SOURCE: City Capital Corp.

June 09, 2009 06:30 ET

City Capital Further Diversifies With City Capital Petroleum, LLC; Acquires Petroleum Distribution Center

NEW YORK, NY--(Marketwire - June 9, 2009) - City Capital Corporation (PINKSHEETS: CTCC) announces the completion of its first acquisition for City Capital Petroleum, LLC. City Capital Petroleum, a retail petroleum distribution center with a convenience store attached, is located in mid-Suffolk County, New York and had annual un-audited revenues of over $3 million in 2008.

City Capital Petroleum was acquired from a leading group with established and proven growth in the retail petroleum industry. Ephren Taylor, City Capital CEO, explains, "The lower cost of acquiring existing facilities gives us distribution, existing retail and commercial clientele, and secures new market share." In addition, the existing success of management and operations allows City Capital to complete a simple transition of ownership.

In spite of economic ambiguity, the petroleum retail industry has shown its steadfast ability to maintain operations. The U.S. Highway Administration reported that vehicle driver miles for February 2009 were down only 0.9% compared with last year, "which is a significant improvement from the driving destruction seen during 2008," according to Olivier Jakob of Petromatrix (source: Sam Fletcher, Oil and Gas Journal). Jakob adds, "Industrial demand is not back yet and unemployment is still very high, but the US driver seems to be reacting to the lower prices at the pump."

With the petroleum industry's resiliency, City Capital Petroleum will provide City Capital with cash flow and revenues. The long-term growth opportunity is even more promising; City Capital anticipates utilizing City Capital Petroleum as a regional hub in partnership with the company's Goshen Energy division. Mr. Taylor describes the potential of embarking on the joining of two independently successful City Capital divisions; "With our Goshen Energy division producing bio-fuels, we anticipate using our physical stations to distribute the fuel. This will create a vertically integrated company from production to retail." The ability for City Capital Petroleum to readily acquire and distribute both bio-fuel and petroleum will give the company a unique advantage within the industry.

The primary goal of President Barack Obama's energy plan is to eliminate the United States' dependence on foreign oil in the next ten years. With City Capital Petroleum and Goshen Energy, City Capital plans to do their part. Goshen Energy's bio-fuels are produced at home, not abroad, and will contribute as a commercial fueling business supplying renewable bio-fuels to U.S. distribution centers such as City Capital Petroleum.

With this acquisition, City Capital plans to upgrade the location with the installation of improved lighting and visibility to create a safer environment, fulfilling the company's socially conscious mandate. City Capital Petroleum plans to expand with three more possible locations in the next 12 months.

City Capital Corporation (CTCC), founded in 1984, is a socially conscious professional management and diversified holding company engaged in real estate investment strategies, self-directed IRA, and leveraging investments, holdings and other assets to build value for investors and shareholders. Ranked in the Top 100 Most Socially Conscious Companies by the Wall Street Journal, City Capital is committed to creating positive change and self-sufficiency through "Socially-Conscious Investing That Empowers Communities." These initiatives range from development and production of bio-fuels, to affordable homes for working-class families, to funding and acquisition of local businesses that support community jobs. The company acquires and revitalizes distressed investment opportunities in multiple industry segments, creating serial returns for its clients.

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications that may arise could prevent the prompt implementation of any strategically significant plan(s) outlined above. The company cautions that these forward-looking statements are further qualified by other factors including, but not limited to, those set forth in the company's Form 10-K filing and other filings with the U S. Securities and Exchange Commission (available at http://www.sec.gov). The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events, or otherwise.

Contact Information

  • Contact:

    City Capital Corp.
    (877) 367-1463

    or

    Infinite Investor Relations Inc.
    Justine Mitchell
    949-892-8116
    JM@infiniteir.com