BEIJING, March 1, 2007 (PRIME NEWSWIRE) -- Lotus Pharmaceuticals, Inc. (OTCBB:LTUS) announced it has completed a $3 million financing with a U.S.-based investment fund. The proceeds will be utilized to expand its domestic markets, increase sales and to acquire additional drugs for its Beijing retail stores.
Commented CEO Dr. Liu Zhongyi: "This $3 million investment provides Lotus with additional capital resources to better deploy and expand our product line, improve our balance sheet and execute our strategic business plan that is focused on marketing, acquisitions and corporate development. We are grateful for the guidance provided by our partner, Genesis Equity Partners, and its parent company (OTCBB:GTEC). Genesis's dedication and leadership assisted our transformation and impressively increased the value of Lotus. This initial funding is the beginning for Lotus, as Western capital will enable our Company to establish a presence first nationally, then internationally amongst China-based pharmaceuticals."
Excerpt of the Form 8-K filed with the Securities and Exchange Commission: "On February 12, 2007, Lotus Pharmaceuticals, Inc. a Nevada corporation (the 'Company') entered into Subscription Agreements, the form of which is attached hereto as Exhibit 10.1 (the 'Agreements'), with the purchasers named therein (the 'Purchasers'). Pursuant to the Agreements, the Company issued to the Purchasers Secured Convertible Notes, the form of which is attached hereto as Exhibit 10.2 ('Notes'), with an aggregate principle value of $3,000,000, plus interest on the unpaid principal balance at a rate equal to 14.0% per annum. The notes are convertible into shares of common stock of the Company a rate equal to $1.00 per share, subject to adjustment. The transaction closed on February 12, 2007."
About Lotus Pharmaceuticals, Inc.
Lotus Pharmaceuticals, Inc. ("Lotus") owns and operates Liang Fang Pharmaceutical, Ltd. ("Liang") and En Zhe Jia Shi Pharmaceutical, Ltd. ("En Zhe"), two Chinese pharmaceutical companies located in Beijing. Liang and En Zhe form a large comprehensive enterprise, which deals in an integration of the production, trade, sales and marketing of pharmaceuticals. Together, they possess some of the most advanced pharmaceutical-production equipment used in China, workshops authenticated by the National GMP, a suite of various medicines produced by Liang and/or En Zhe (together, "Lotus East"), and a large number of high-tech personnel. Lotus East has business and office facilities of 2,000 square meters and a warehouse of 1,000 square meters. Lotus East performs scientific research on new medicines, and the production, wholesale and retail sale of medicines. For more information, visit www.LotusEast.com.
Safe Harbor Statement
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