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WEST PALM BEACH, Fla. -- In a semi-annual update, Petroleum Consolidators of America Inc. (PCAI), a gas station/convenience store operator, reported several positive developments regarding its roll-up strategy, continued progress into the wholesale fuel supply segment and potential entrance in the coal industry.
The company said: "each development serves as a vertical integration within its business model," demonstrating further progress toward achieving both its short- and medium-range corporate goals. The three major revenue streams targeted by PCAI are retail gas stations with supported convenience stores; wholesale fuel supply contracts from company-owned stores and outside operators, and coal production and sales.
According to PCAI’s update—released yesterday —the company accomplished several milestones during the first six months of this year that add shareholder value, including relinquishing an underperforming store in Vero Beach, Fla., as well as entering into an agreement with Sunderland Capital LLC for a $10 million equity line financing.
PCAI also announced plans to file the requisite Securities and Exchange Commission (SEC) paperwork to become listed on the Over-the-Counter Bulletin Board.
Furthermore, Petroleum Consolidators said it entered into a letter of intent (LOI) for a gasoline station in Indian River County, Fla., that it anticipates closing on between late August and September, in addition to a non-binding LOI to merge with a coal company based in Sullivan County, Ind.
Lastly, the company recently announced its intention to spin off a wholly owned subsidiary to shareholders of record as of June 10, 2009.
"In summary, we continue to exercise prudent judgment in evaluating business opportunities and navigating our course of action, and although not every LOI turns into a closed transaction, we feel that we should achieve our goals in a moderate time frame," Petroleum Consolidators President and CEO David Cohen stated.
"Management believes the company could see an increase in top- and bottom-line numbers over the short and long-term periods through the implementation of our proven business model, and we are confident these steps should allow us to maximize shareholder value. In the coming weeks, we will continuously update our shareholders on our progress," he added.
Petroleum Consolidators is implementing a targeted acquisition strategy to create a portfolio of consolidated retail gasoline facilities, wholesale fuel distributorships and a coal mining operation that will benefit from substantial operating efficiencies.
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