AmBase Corporation (OTC:ABCP) had a mind-blowing session yesterday. ABCP closed up 309.68% at $1.27 with more than 2.5 million shares traded. The cause for the fantastic performance is an 8-K form the company filed yesterday.
It reveals that on Aug. 31 Judge Loren Smith of the United States Court of Federal Claims issued an opinion in ABCP’s legal proceedings, awarding the company $205 million in lost value expectancy damages, plus tax gross-up if applicable.[BANNER]
Other than that, ABCP hasn’t been doing much. The company owns a commercial office building in Connecticut through a wholly-owned subsidiary. ABCP also used to own an insurance company and a savings bank.
For the first half of 2011 the company hasn’t generated revenue from operations and recorded an $850 thousand net loss. Still, as of June 30 ABCP had enough cash on hand to cover all of its liabilities.
With this legal development the company may have enough money to finance some kind of active operations soon, however, ABCP hasn’t announced any of its plans yet. In the 8-K form it is said that: “The Company is still reviewing the Court’s damages opinion with its advisors.” The end of this story is not yet clear, and it may be worth keeping an eye on.
