After its stock closed below $1.00 per share for 30 consecutive business days, Comstock Homebuilding Companies announced that its stock closed below the minimum for continued inclusion on The NASDAQ Stock Market.
The notice has no effect on the listing of the Comstock's securities at this time and its common stock will continue to trade on the NASDAQ Global Market under the symbol "CHCI." If Comstock's stock closes at $1.00 per share or more for a minimum of 10 consecutive business days, NASDAQ staff will provide written notification that the company has achieved compliance with the minimum bid price requirement. The Company has 180 calendar days, or until July 7, 2008, to regain compliance.
"It is administrative and technical in nature and is not an indirect reflection by NASDAQ on the trading worthiness of Comstock," said Bruce Labovitz, the CFO for Comstock.
If the Comstock does not regain compliance with the minimum bid price requirement by July 7, NASDAQ will provide written notification that its securities will be delisted. At that time, the company can appeal the delisting determination or may apply to transfer its securities to the NASDAQ Capital Market. If that happens, the company will be afforded an additional 180 calendar days to comply with the minimum bid price requirement while listed on the NASDAQ Capital Market.
Right now, Comstock hasn't decided what action to take in response to this notice, though it will continue to monitor the price of its stock and work to bring the price back up.
"We are hopeful that in the interim [between now and July 7] the many initiatives we have undertaken in the past few months to sell inventory, our published results for the fourth quarter, and our continued emphasis on debt reduction and liquidity will collectively help us regain compliance," Labovitz said. "We believe that our current strategies will be successful over time in restoring shareholder value and meeting the requirements for continued listing on NASDAQ."