By Sheri Kasprzak
New York, May 10 - Comstock Homebuilding Cos., Inc. has sealed up agreements with institutional investors for $20,001,482.
The investors agreed to buy 2,121,048 class A shares at $9.43 each.
The offering also includes warrants for 636,316 shares, exercisable for five years at $11.32 each.
J.P. Morgan Securities Inc. is the placement agent.
The company also raised $30 million from a 30-year junior subordinated note with a five-year fixed rate coupon of 9.72%.
The proceeds from the PIPE will be used for new projects, working capital and general corporate purposes.
The proceeds from the note will be used to pay for Comstock's acquisition of Capitol Homes, Inc., a private homebuilder based in Raleigh, N.C. The acquisition closed on May 5. The rest of the proceeds from the note will be used to repay Capitol's outstanding debt.
Located in Reston, Va., Comstock is a real estate development company.
| Issuer: | Comstock Homebuilding Cos., Inc.
|
| Issue: | Class A shares
|
| Amount: | $20,001,482
|
| Shares: | 2,121,048
|
| Price: | $9.43
|
| Warrants: | For 636,316 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $11.32
|
| Placement agent: | J.P. Morgan Securities Inc.
|
| Settlement date: | May 5
|
| Stock symbol: | Nasdaq: CHCI
|
| Stock price: | $9.80 at close May 5
|
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