Public Announcement From Lotus Pharmaceuticals, Inc.
Published: Apr 10, 2012
BEIJING, April 10, 2012 /PRNewswire-Asia/ -- Lotus Pharmaceuticals, Inc. (OTCBB: LTUS) ("Lotus" or the "Company") issued the following statement: For the past five years when Lotus Pharmaceuticals became a public company on the OTC bulletin board, the Company invested a significant amount of capital every year in maintaining a good listing status. In the past two years, the Company has put in a large amount of capital in the building and furnishings of its new headquarters in Beijing Chaoyang District. The funding for the new building all came from the Company's operational income and the Company has not received any external funding support. As a result, the Company is experiencing a liquidity crunch currently with an extremely low level of working capital, and will be unable to continue to spend on auditing and other professional services that are required for a public company. Given our financial condition, if we could not secure additional investments from outside, the Company will not be able to fund professional services that are necessary for a public company, such as auditing and legal services, and the Company could get delisted eventually. If there are investors that would like to support us and provide us with additional funding, we would be glad to work out a solution so that we could maintain our good listing status. We appreciate your understanding, help, and support over the years.
About Lotus Pharmaceuticals, Inc.
Lotus Pharmaceuticals, Inc. is a profitable developer and producer of drugs and a licensed national seller of pharmaceutical items in the People's Republic of China (PRC). Lotus operates its business through its two controlled entities: Liang Fang Pharmaceutical, Ltd. and En Ze Jia Shi Pharmaceutical, Ltd. Lotus' current drug development is focused on the treatment of cerebro-cardiovascular diseases, asthma and diabetes. Liang Fang sells drugs directly and indirectly through its national sales channels to hospitals, clinics and drugs stores in 30 provinces of the PRC.
Information Regarding Forward-Looking Statements
Except for historical information contained herein, the statements in this press release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. These and other risks are described in our filings with the U.S. Securities and Exchange Commission.
SOURCE Lotus Pharmaceuticals, Inc.