RESTON, VA, Apr 01, 2008 (MARKET WIRE via COMTEX News Network) -- Comstock Homebuilding Companies, Inc. (NASDAQ: CHCI) ("Comstock" or
the "Company") announced that in connection with their unqualified
opinion regarding the Company's 2007 audit, the Company's independent
registered public accounting firm, PricewaterhouseCoopers, indicated
their belief that declining market conditions and the significant
amount of the Company's debt which matures in 2008 creates
substantial doubt that the Company would continue operating as a going
concern.
This announcement is in compliance with the Nasdaq Rule 4350(b)(1)(B)
requiring separate disclosure of receipt of an audit opinion that
contains a going concern qualification, and does not reflect any
change or amendment to the December 31, 2007 financial statements
which were prepared by the Company as if it would continue operating
as a going concern. The Company's financial statements were filed
with the Securities and Exchange Commission on March 24, 2008 in
connection with the Company's Current report on Form 10-K for the
year ended December 31, 2007.
About Comstock Homebuilding Companies, Inc.
Established in 1985, Comstock Homebuilding Companies, Inc. is a
publicly traded, diversified real estate development firm with a focus
on affordable priced for-sale residential products. Comstock builds
and markets single-family homes, townhouses, mid-rise condominiums,
high-rise condominiums, mixed-use urban communities and active adult
communities. The company currently markets its products under the
Comstock Homes brand in the Washington, DC; Raleigh, North Carolina;
and Atlanta, Georgia metropolitan areas. Comstock Homebuilding
Companies, Inc. trades on NASDAQ under the symbol CHCI. For more
information on the Company or its projects please visit
www.comstockhomebuilding.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. Statements that are predictive in
nature, that depend upon or refer to future events or conditions, or
that include words such as "may," "will," "expects," "projects,"
"anticipates," "estimates," "believes," "intends," "plans," "should,"
"seeks," and similar expressions, including statements related to
Comstock's expected future financial results and anticipated growth
in the Washington, DC housing market, are forward-looking statements.
Forward-looking statements involve known and unknown risks and
uncertainties that may cause future results to differ materially from
those projected or contemplated in the forward-looking statements.
These risks and uncertainties include, but are not limited to,
economic, market and competitive conditions affecting Comstock and
its operations and products, risks and uncertainties relating to the
market for real estate generally and in the areas where Comstock has
projects, the availability and price of land suitable for
development, materials prices, labor costs, interest rates,
Comstock's ability to service its significant debt obligations,
fluctuations in operating results, anticipated growth strategies,
continuing relationships with affiliates, environmental factors,
government regulations, the impact of adverse weather conditions or
natural disasters and acts of war or terrorism. 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 on March 24, 2008. 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 Homebuilding Companies, Inc.