Comstock Homebuilding Companies, Inc., Reston, Va., (NASDAQ:CHCI was notified Monday that it has regained compliance with the $1.00 minimum bid-price requirement for listing on the NASDAQ exchange after its shares achieved a closing bid-price exceeding $1.00 for 10 consecutive days on April 19.
The notification means investors will again be able to call up a current quote on Comstock shares through financial websites that offer real-time quotes.
The company had been out of compliance with the $1 minimum bid rule for more than a year between 2008 and 2009 as well as with requirements for minimum shareholder equity and minimum market value for portions of that period but made its case before a NASDAQ Listing Qualifications Hearing Panel to keep the listing active.
"We are pleased to have achieved this important milestone," said Christopher Clemente, Comstock's chairman and CEO. "We believe the steps we have taken to stabilize our business will position Comstock well to capitalize on emerging opportunities in a stabilizing environment. Our greatly reduced overall debt and reduced operating costs should allow us to enhance liquidity as we continue to sell through inventory and focus on rebuilding shareholder value."
Comstock has rebounded from a deep slump during which its own auditor expressed doubt that the company could "continue as a going concern." That caution was removed from the yearend audit report on the company's 2009 earnings, which was released at the end of March.
For 2009, Comstock reported a net loss of $26.8 million but said it had turned around during the second half to post net income for its fourth quarter ended December 31, 2009 of $1.4 million. It spent much of the year in talks with lenders to eliminate and restructure debt. It reduced its debt from $102.8 million at December 31, 2008 to $67.6 million by yearend 2009.
So far in 2010, the company has sold land at its Station View project for$2.8 million, received a a tax refund of $861,000 and has won an $11.7 million court judgment through its Comstock Potomac Yard, LC subsidiary against Balfour Beatty related to the company's Eclipse condominium project in Arlington, Virginia. It has been appealed, and Comstock expects a ruling on the appeal to be issued in this year's fourth quarter.
Earlier, Comstock renegotiated terms with Bank of America on a $3.7 million line of credit that suspended interest payments for a year. In December, a company owned by Clemente, Stonehenge Funding LC, bought a senior, unsecured Comstock note from J.P. Morgan Ventures that had an outstanding balance of$9 million. Clemente announced in February that half that principal amount had been forgiven along with $875,000 in past due interest.