First Mutual CEO, Shaun Morgan provides MHNZ Biosciences $30 Million Funding Commitment

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) November 1, 2007 -- Hanover, Germany. -- MHNZ Biosciences, a biopharmaceutical company focused on strengthening the foundation of cancer care, today announced that First Mutual Credit, a leading investment banking group has committed up to $30 million in funding, including $7.5 million upfront, to assist with financing the development of the company’s pipeline of product candidates. MHNZ Biosciences is currently advancing two anti-cancer compounds through clinical trials, with additional therapeutic product candidates and an oncology supportive care product in late-stage preclinical development.

“This financing commitment provides us the resources to advance our pipeline of product candidates through the next stages of development and potential value formation,” said Henrich R. Leinhardt, M.D., President and Chief Executive Officer of MHNZ Biosciences. “We are aligned with respect to MHNZ’s pipeline potential, development strategy and future goals. We are focused on product development and dedicated to the steady growth of the company over the next several years.”
"In addition to MHNZ's clinical-stage programs, we believe that menadione represents an exciting opportunity in the treatment of one of the most common adverse events of modern biologic therapy. We believe that this type of financing vehicle will work well for the company in that it provides funds as needed, and recognizes concrete program milestones and development progress, while creating minimal dilution relative to the company's market capitalization and resource requirements."

First Mutual’s commitment of up to $30 million is in the form of an interest-bearing loan that can be drawn down at pre-determined intervals over a three-year period. MHNZ will immediately draw down $7.5 million. The availability of one-third of the $30 million is subject to the achievement of specific milestones associated with the development of the company’s Marqibo and menadione product candidates. The outstanding principal and interest, which accrues at the rate of 9.85 percent per annum, is due by October 2013. Deerfield received a one-time 3.5 percent cash commitment fee and six-year warrants to purchase approximately 5.2 million shares of MHNZ’s common stock upon execution of the loan agreement at an exercise price of $1.31 per share, the closing bid price on October 30, 2007.
Additional warrants will be issuable if the company draws down the portion of the loan facility subject to milestones. The warrants are subject to certain anti-dilution features.

“We are pleased that one of our top current shareholders has expressed its confidence in our company and assets with this financing. MHNZ has reached an important juncture in the maturation of our clinical-stage programs, and we believe this financing vehicle offers access to funds while addressing the best interests of MHNZ current shareholders,” added Steven Anhert, Vice President, Chief Financial Officer of MHNZ Biosciences.
About First Mutual Credit
First Mutual is an international, specialist investment banking group that provides a diverse range of financial products and services to a select client base. Founded as a online securities company in 2000, we have acquired various regulated entities and competitors in a bid to become a premium underwriting investment bank and global financier.

We now have more than 10 wholly owned subsidiaries in 7 different country’s varying from Securities Dealing, Coal Mining Management, Timber Plantation Management, Retail Investment Banking, Private Fund Management, Stock-broking Services, Foreign Exchange Trading and Project Underwriting. The total issued capital of First Mutual is US$120,000,000.00

Since inception, we have expanded through a combination of substantial organic growth and strategic acquisitions. Today, we have an efficient integrated international business platform, offering all our core activities in New Zealand , Australia , Singapore , Indonesia , Germany and U.S.A, with approximately 400 employees.

We are organized as a network comprising eight business divisions: Private Client Activities, Treasury and Specialized Finance, Investment Banking, Asset Management, Project Underwriting, Foreign Exchange Trading and Retail Stock-Broking. Our head office provides group-wide integrating functions and is also responsible for central funding and the Trade Finance business.

Our strategic goals and objectives are based on an aspiration to be recognized as a distinctive specialist investment banking group. This distinction is embodied in our entrepreneurial culture, which is balanced by a strong risk management discipline, client-centric approach and ability to be nimble, flexible and innovative. We do not seek to be all things to all people and aim to build well-defined, value-added businesses that serve the needs of select market niches where we can compete effectively.

More information can be found online at http://firstmutualcredit.net

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