Midwest Business Credit, Inc. (MBC Inc), a wholly owned subsidiary of Q Lotus Holdings, Inc. has concluded a definitive agreement for the purchase of the assets and the business of Midwest Business Credit LLC (MBC LLC), consistent with the previous announcement made by Q Lotus on December 14, 2011.
Pursuant to the definitive agreement, MBC Inc. will be purchasing all of the MBC LLC assets and loan portfolio for approximately $7.8 million dollars.
MBC LLC is an asset-based lending corporation that provides secured financing to companies that are unable to secure working capital from traditional financial institutions.
The management team at MBC LLC, including CEO, Tim Bellcourt, and CFO, Linda Canino, will manage the day-to-day operations of MBC Inc., and each will enter into a five-year management contract with MBC Inc. to help facilitate its planned expansion.
“We anticipate substantial expansion of various lending activities given the high demand from manufacturing, distribution, and service businesses looking for additional capital,” said Bellcourt.
The closing is scheduled to take place on or before February 15, 2012; however, it is subject to approval from the Q Lotus Holdings, Inc. Board of Directors, the parent company of MBC Inc.
“The demand for asset based financing is growing at a time when the number of lenders is shrinking. The changing market conditions have opened a substantial hole in the commercial credit market geared toward the needs of the small to mid-size businesses,” stated Gary Rosenberg, CEO of Q Lotus Holdings, Inc. “We plan to aggressively expand the activities of MBC Inc. in the asset-based lending market given the high demand and strong market for asset-based commercial credit.”
Q Lotus Holdings, Inc. is a diversified financial services holding company that provides financing to early stage companies and acquires growth potential companies that present an opportunity for value creation through Q Lotus’ participation in management and operations.
Previously on abfjournal.com:
Q Lotus ABL Subsidiary Announces Plans to Commence Operations, Wednesday, December 14, 2011