RESTON, Va., June 17, 2005 /PRNewswire-FirstCall via COMTEX/ -- Comstock Homebuilding
Companies, Inc. (Nasdaq: CHCI) (the "Company"), a leading regional homebuilder
in the Mid-Atlantic area, today announced that it has priced a follow-on
offering of 3,200,000 shares of its Class A common stock to the public
including 840,500 secondary shares. Priced at $23.90 per share, the equity
offering raised a total of more than $76 million dollars, including $56.4
million of gross proceeds to the Company. Banc of America Securities LLC and
BB&T Capital Markets served as joint lead managers of the offering with Robert
W. Baird & Company and Ferris, Baker Watts, Inc. having served as co-managers.
The Company, which raised approximately $73 million when it completed its
initial public offering in December 2004, indicated in its Registration
Statement on Form S-1 with the Securities and Exchange Commission that the
proceeds from this offering would be used for general corporate purposes
including working capital and investment in new real estate projects. The
filing referenced several potential new project acquisitions in the greater
Washington, DC area that could generate more than 2,000 new settlements for
the company with an estimated aggregate purchase price to the Company of
approximately $132 million.
This press release shall not constitute an offer to sell or a solicitation
of an offer to buy and there shall not be any sale of these securities in any
state or jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws of
any such state or jurisdiction.
About Comstock Homebuilding Companies, Inc. Comstock is a production
homebuilder that develops, builds, and markets single-family homes,
townhouses, mid-rise condominiums, hi-rise condominiums, and mixed-use
developments. The Company currently operates in the Washington, D.C. and
Raleigh, North Carolina markets where it targets a diverse range of buyers,
including first-time, early move-up, secondary move-up, empty nester move-down
and active adult home buyers. For more information on Comstock, please visit
http://www.comstockhomebuilding.com.
This press release includes "forward-looking statements" within the
meaning of the federal securities laws, which involve uncertainties and risks.
These include statements regarding events or developments that the Company
expects or anticipates will occur in the future, such as statements about the
Company's strategies to improve operating performance. Please refer to the
Company's prospectus and its other filings with the Securities and Exchange
Commission for a complete discussion of these and other important factors that
could cause results to differ materially from those projected by these
forward-looking statements.
SOURCE Comstock Homebuilding Companies, Inc.
Al Black of Qorvis Communications, +1-703-744-7833, ablack@qorvis.com, for Comstock
Homebuilding Companies, Inc.