CHICAGO, April 28, 2011 /PRNewswire/ -- Q Lotus Holdings, Inc. (OTCBB:QLTS) announces a Letter of Intent with Urban R2 Development Company, LLC (UR2). Q Lotus will loan UR2 $35,600,000. Anytime after the May closing date, Q Lotus can convert the outstanding principle loan amount plus unpaid interest into a 50% equity stake in UR2. If the loan is not converted into equity, the promissory note will expire on the maturity date, 5 years from closing.
The Company expects to close the agreement within 20 days.
About Urban R2 Development Company, LLC
Urban R2 Development Company, LLC (UR2) is a Chicago-based company that focuses on Real Estate development projects. In 2006, UR2 completed the 40-story condo tower at 600 N. Fairbanks in Chicago, IL which was designed by the acclaimed architect, Helmut Jahn. UR2 has plans to develop a 21-story apartment building at 630 W. Washington in the Near West Loop of Chicago. The building, dubbed Catalyst, was designed by Lucien LaGrange, and will feature a Walgreen's on the ground floor. Additionally, UR2 has been awarded the opportunity to develop a downtown for the Village of Wheeling based on its master plan concept which they created with the architects at RTKL. UR2 expects to joint venture with a group that has a twelve year proven track record of successfully acquiring distressed notes and opportunistic real estate at discount pricing. UR2 is also negotiating specific licensing agreements for development opportunities on an international basis.
The UR2 Development Team has extensive experience developing instrumental real estate projects with contributing factors throughout the country including over 50,000 residential units, related commercial facilities, and recreational amenities – including many heralded golf courses, one of which has been the host to the PGA Championship. Some of the planned community developments spanned up to 4,000 acres in size and required major infrastructure, including the establishment of utilities and service companies to support the public. UR2 is also very active with the Kellogg Graduate of School of Management at Northwestern University. Its principal created the real estate program, founded and chaired the real estate research center, and is still a member of the Kellogg Board. Additional programs, scholarships, and funds were established and supported for the University of Southern California, the University of Wisconsin – Green Bay, and St. Norbert College. UR2 has a clear vision and strategy to substantially grow its income based on acquiring quality real estate at meaningful discounts, adding value, and completing timely sales.
About Q Lotus Holdings, Inc.
Q Lotus Holdings, Inc., a diversified holdings company, is a Chicago-based minority owned business. The Company has a clear vision how to leverage its intellectual capabilities, assets and opportunities, while at the same time, seizing an abundance of prospects provided by the current economic conditions. Acquisitions will be based on future growth potential and leadership. Q Lotus expects to nurture these businesses infusing cash and managerial leadership as needed on a venture capital and/or incubator basis. The Company continues to focus on shareholder value as the cornerstone in its day-to-day operations, and it will continue to provide frequent public updates. www.qlotuspe.com
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.
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SOURCE Q Lotus Holdings, Inc.