RESTON, Va.--(BUSINESS WIRE)--
Comstock Holding Companies, Inc. (Nasdaq:CHCI)
("Comstock" or the "Company"), a homebuilding and multi-faceted real
estate development and services company in the Washington, D.C.
metropolitan area, today announced its entry into an option and
separation agreement with Gregory V. Benson, the former Chief Operating
Officer of the Company.
In connection with the agreement, Mr. Benson has granted the Company, or
its designee, an option through June 30, 2015 to purchase all or a
portion of his Class A and Class B common stock for a price of $1.09 a
share. The Company may execute the repurchase in a single or in multiple
transactions during the option period, provided the first such purchase
includes a minimum of 1,000,000 shares. Additionally, the Company
announced that pursuant to Mr. Benson's employment contract, the Company
will pay Mr. Benson severance of up to $597,000, payable over an
18-month period commencing from May 1, 2014, which is approximately the
amount of Mr. Benson's ordinary base salary during the severance period.
Mr. Benson remains on the Company's Board of Directors. His current term
will expire at the Company's 2015 annual meeting of stockholders.
Christopher Clemente, Chairman and Chief Executive Officer, commented,
"We thank Greg for his many years of management service to Comstock and
for working with us to develop an agreement that is advantageous to all
parties. We believe the agreement announced today will facilitate the
Company's efforts to attract additional growth capital.
"As demonstrated by our growth over the last two years in unit
deliveries and revenue, market conditions in the Washington, D.C.
metropolitan area have improved significantly. We believe Comstock is
well positioned to capitalize on the attractive opportunities that exist
in today's market. Our pipeline of controlled building lots has improved
and we are making significant progress towards increasing our open
community count, which is an important part of our strategic plan."
The Company will provide a general update regarding the status of
operations when it reports its financial results for the second quarter
About Comstock Holding Companies, Inc.
Comstock is a homebuilding and multi-faceted real estate development and
services company that builds a wide range of housing products under its
Comstock Homes brand through its wholly owned subsidiary, Comstock Homes
of Washington, LC. Our track record of developing numerous successful
new home communities and more than 5,500 homes, together with our
substantial experience in building a diverse range of products including
apartments, single-family homes, townhouses, mid-rise condominiums,
high-rise condominiums and mixed-use (residential and commercial)
developments, has positioned Comstock as a leading residential developer
and homebuilder in the Washington, D.C. metropolitan area. Comstock
Holding Companies, Inc. is a publicly traded company, trading on NASDAQ
under the symbol CHCI. For more information about Comstock or its new
home communities, please visit www.comstockhomes.com.
Cautionary Statement Regarding Forward-Looking Statements
This release contains "forward-looking" statements that are made
pursuant to the Safe Harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements involve known
and unknown risks and uncertainties that may cause actual future results
to differ materially from those projected or contemplated in the
forward-looking statements including incurring substantial indebtedness
with respect to projects, the diversion of management's attention and
other negative consequences. Additional information concerning these and
other important risks and uncertainties can be found under the heading
"Risk Factors" in the Company's most recent Form 10-K, as filed with the
Securities and Exchange Commission. Comstock specifically disclaims any
obligation to update or revise any forward-looking statements, whether
as a result of new information, future developments or otherwise.
Source: Comstock Holding Companies, Inc.