SOURCE: City Capital Corp.

April 11, 2006 09:30 ET

City Capital Signs Letter of Intent to Acquire Ephren Taylor's ECC Jazz

MENDOTA HEIGHTS, MN -- (MARKET WIRE) -- April 11, 2006 -- City Capital Corporation (the "Company") (OTC BB: CCCN) today announced that it has signed a preliminary letter of intent for the acquisition of ECC Jazz District Acquisitions, LLC ("EJD"). The letter of intent generally provides that City Capital will issue a quantity of restricted shares of its common stock to acquire the organization. Following the transaction, ECC Jazz District Acquisitions, LLC will be a wholly owned subsidiary of the Company and the former shareholders of ECC Jazz will own a majority of the shares of City Capital to be outstanding following the transaction.

Within the Kansas City Historic Jazz District, EJD will first build 42 affordable single-family homes. Other plans also include a condominium and shopping for the area. The Jazz District is home to the Jazz Museum and the Negro Leagues Museum, as well as Kansas City's historic "castle," an old jail that will be turned into a community building or museum as well. Under the terms of the letter of intent, Mr. Ephren Taylor will be appointed CEO of City Capital Corporation.

Unlike the "project housing" of old, today "...cities want homeowners, not renters. People who rent never feel like it's their home, there's no pride of ownership. People who own a home think of their neighborhood as their own, and a sense of community evolves as a result," said EJD's Ephren Taylor. "We are completely revitalizing the Historic Kansas City Jazz District, Cleveland's historic 7th Ward, and over a hundred middle-income homebuyers have already applied through the Community Development Corporation to purchase one of the new homes. Mr. Ephren Taylor has over a decade of experience in growing companies, starting with his first 3-D game developing company at age 12. He followed that with GoFerretGo.com, raising the necessary capital to grow the company to a book value of $3.6 million. In 2002 he won the prestigious Kansas Entrepreneur of the Year award for his investment strategies, originally formulated to assist churches. Along the way, he has created a strong team with over 225 years experience in construction, legal, accounting, marketing, and other key areas.

ECC Jazz District Acquisitions, LLC is in the process of having its 2005 financial statements audited by its independent auditors and the foregoing figures are subject to adjustment as a result of the audit.

Consummation of the transaction is subject to several significant conditions, including the completion of due diligence reviews of the business and financial condition of each party by the other, and the negotiation and execution of a definitive agreement containing additional terms and conditions acceptable to both parties and their legal counsel. No assurances can be given that a definitive agreement will be entered into or that the proposed transaction will be completed.

SHAREHOLDERS AND OTHERS ARE REMINDED THAT A LETTER OF INTENT ONLY HAS BEEN SIGNED AND THAT CONSUMMATION OF THE TRANSACTION IS SUBJECT TO SEVERAL CONDITIONS. SHAREHOLDERS AND OTHERS ARE URGED NOT TO BASE ANY DECISION WITH RESPECT TO THE PURCHASE OR SALE OF THE STOCK OF CITY CAPITAL CORPORATION ON THE BASIS OF RUMOR OR SPECULATION.

About City Capital

City Capital is a Business Development Company (BDC) authorized by Section 54(a) of the Investment Company Act of 1940 to make loans and equity investments in developing business enterprises. As a BDC, the Company is authorized to raise up to $5 million of capital every 12 months with expedited share registrations on form 1E, which generally are effective within 10 days of filing. The Company proposes to grow by using capital from public stockholders to invest in companies with strong balance sheets, prospects for high profit margins, and solid management teams in place. Stockholders will be provided the liquidity of a publicly traded stock while participating in the benefits of investing in privately owned growth companies. The Company is currently focused on investments in companies with solid positions in rapidly appreciating commodities that can be quickly translated into high-margin revenues.

This release contains "forward-looking statements" based on current expectations but involving known and unknown risks and uncertainties, including those described in the Company's annual report on Form 10-KSB for the year ended December 31, 2005, that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, whether as a result of new information, future events or otherwise. The Company's plans and objectives are based on assumptions involving judgments with respect to future economic, competitive and market conditions, its ability to consummate, and the timing of, acquisitions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the Company's control. Therefore, there can be no assurance that any forward-looking statement will prove to be accurate. The Company makes no undertaking to update such forward-looking statements.

Contact Information

  • City Capital Corporation

    2535 Pilot Knob Road, #118
    Mendota Heights MN 55120
    (651) 451-1606 voice
    (651) 452-5838 fax

    Attention:
    Gary Borglund, President
    gborglund@citycapitalcorp.net