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WEST PALM BEACH, Fla. -- Petroleum Consolidators of America Inc., a gasoline station/convenience store consolidator headquartered here, announced yesterday it signed a letter of intent to merge with an Indiana-based private natural resource company, which currently has a sizeable proven mining reserve.
The letter of intent will allow Petroleum Consolidators ample time to perform its due diligence prior to the scheduled closing of Aug. 3. This merger will broaden the current focus of the business and ultimately add to shareholder value, the company said.
"Due to the increase in the demand for energy and energy solutions worldwide, we have chosen to move in a direction that will transition us from a regional petroleum-based consolidator to a national resource company," stated David Cohen, Petroleum Consolidators' president and CEO in a release statement. "We feel that we have identified an ideal merger candidate and are currently working toward closing this transaction in a timely manner."
Petroleum Consolidators of America bills itself as a gasoline station/convenience store operator focused on implementing a targeted acquisition strategy to create a portfolio of consolidated retail gasoline facilities, producing oil wells and a wholesale fuel distributorship that will benefit from substantial operating efficiencies.
"Based on our initial discussions, current analysis and the geological report dated April 28, 2009, which was written by an independent third party, we have ascertained that this merger candidate controls significant assets in the form of a mining reserve that is conservatively valued in excess of $100 million based on current market prices," Cohen continued in his statement. "Furthermore, I feel this merger is the best direction for Petroleum Consolidators to take in order to maximize the company's worth, as well as increase shareholder value to the greatest extent."