CHICAGO, May 11, 2011 /PRNewswire/ — Q Lotus Holdings, Inc. (OTCBB:QLTS) announces it has signed a Letter of Intent to acquire Midwest Business Credit for $20 million.

Midwest Business Credit (MBC) provides secured asset-based financing to companies that are typically deprived working capital from traditional financial institutions. Most of the MBC clients are involved in the manufacturing, distribution, and service businesses.

“The demand for asset-based financing is growing at a time when the number of lenders is shrinking,” stated Gary Rosenberg, CEO of Q Lotus Holdings. “The changing market conditions have opened a substantial hole in the commercial credit operation geared toward the needs of the small to mid-size businesses.”

“Most banking institutions are focused on large transactions, and the smaller banks do not have the staff to monitor asset-based credit facilities, and they are restricted by federal and state regulations,” states Timothy Bellcourt, the founder and manager of MBC.

Mr. Bellcourt has over 25 years of experience in the asset-based lending industry. Mr. Bellcourt has agreed to continue managing MBC, and he will also continue to have a vested interest in MBC as per the terms of the signed letter of intent.

“Tim has done an amazing job with the company thus far. His bad debt is less than 1%,” adds Mr. Rosenberg. “The commercial finance industry was drastically affected by the credit crunch, and there is a tremendous opportunity to work with growing companies who possess the talent and momentum to succeed as a viable business enterprise.”

The transaction is subject to various closing conditions, including the entering into of definitive acquisition agreements, due diligence review, approval of the transaction by our Board of Directors and other customary closing conditions. The acquisition is expected to close during the second quarter of calendar year 2011. Until the acquisition is completed, both companies will continue to operate their businesses independently.

About Q Lotus Holdings, Inc.

Q Lotus Holdings, Inc. is a diversified financial services holdings company that plans to finance and acquire growing companies where we believe our management participation in operations can create additional value. Acquisitions will be based on future growth potential and company leadership. Q Lotus expects to nurture these businesses, infusing cash and managerial leadership as needed. The Company continues to focus on shareholder value as the cornerstone in its day-to-day operations.

Q Lotus Holdings is a member of EquityGroups, the Investors Social Network.

Safe Harbor Statements

This release contains forward-looking statements within the meaning of the federal securities laws. The forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve significant risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Information on significant potential risks and uncertainties that may also cause differences includes, but is not limited to, those mentioned by Q Lotus from time to time in its filings with the SEC. The words “may,” “will,” “believe,” “estimate,” “expect,” “plan,” “intend,” “project,” “anticipate,” “could,” “would,” “should,” “seek,” “continue,” “pursue” and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates on which they were made. Q Lotus undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may be disclosed from time to time in our SEC filings or otherwise, including factors discussed in our periodic reports made with the SEC, and, therefore, readers should not place undue reliance on these forward-looking statements. Actual results, including, without limitations, the results of Q Lotus’ strategic initiatives, may differ significantly than those anticipated in forward-looking statements. Q Lotus undertakes no duty to update these forward-looking statements, except as required by law.

Contact:
Brad Friedman
BFriedman@QLotusInc.com
(312) 379-1800 x5

SOURCE Q Lotus Holdings, Inc.