Millennium, Aisling enter into letter of intent for new nutraceutical company

By Elaine Rigoli

Tampa, Fla., April 5 - Millennium Biotechnologies Group, Inc. announced that it has entered into a letter of intent with Aisling Capital II, LP that could result in the sale of all of the assets used in Millennium's nutraceutical business to a newly formed company controlled by Aisling in exchange for shares of common stock of the new company.

The newly formed company would be initially capitalized by the issuance to Aisling of $15 million in convertible preferred stock.

"We believe that this transaction further validates the viability of Resurgex products and that it will provide the capital necessary for the Resurgex product line to achieve significant market penetration," Millennium president and chief executive officer Jerry E. Swon said in a news release.

The letter of intent, which has been filed as an exhibit to Millennium's form 8-K filed with the Securities and Exchange Commission, is nonbinding and is subject to various conditions, including completion of due diligence by Aisling and approval by Millennium's stockholders, the release said.

New York-based Aisling Capital is a private equity fund that invests in companies developing biopharmaceutical products and creating businesses based on advanced life sciences technology.

Millennium Biotechnologies is a research-based nutraceutical company located in Basking Ridge, N.J.

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