Comstock Holding Companies, Inc. (CHCI) and Jericho Energy Ventures Inc. (JEV) entered into a letter of intent on February 11, 2026, and publicly announced the agreement on February 12, 2026. The two companies will form a joint venture to acquire and develop the land surrounding JEV’s existing energy assets in Oklahoma, with the goal of building an AI‑driven data‑center campus that will use Jericho’s subsurface energy infrastructure.
Under the terms of the agreement, CHCI will invest $1.5 million in a private placement of JEV units priced at CAD $0.08 each. Each unit consists of one variable‑voting share and half a warrant, providing CHCI with a stake in JEV’s equity and a potential upside from future warrant exercise. In addition, CHCI is expected to contribute $6 million USD to the newly formed joint venture, a capital infusion that will fund land acquisition, construction, and early operating costs for the data‑center project.
The partnership blends CHCI’s real‑estate development expertise with JEV’s energy and AI capabilities. By leveraging JEV’s existing energy infrastructure, the joint venture aims to reduce the capital intensity of building data‑center facilities, while CHCI gains exposure to the high‑growth AI data‑center market. For JEV, the deal represents a strategic pivot toward energy‑intensive, high‑margin AI services, complementing its traditional oil and gas operations and its recent investments in hydrogen and other clean‑energy technologies.
Financially, JEV reported a net loss of CAD $1.53 million in its most recent quarter and has a market capitalization of approximately CAD $28.88 million, with its share price having fallen 44.12% over the past year. CHCI, by contrast, posted Q3 2025 revenue of $13.3 million and a net income of $0.5 million, reflecting a stable real‑estate portfolio and a modest but growing earnings base. The $6 million JV contribution represents a significant allocation of CHCI’s capital, underscoring its confidence in the data‑center opportunity.
The joint venture will be subject to regulatory approvals, including acceptance by the TSX Venture Exchange, and will require the completion of standard due‑diligence and financing steps. CHCI’s CEO, Chris Clemente, is slated to join JEV’s board of directors, a move that will align governance and strategic oversight across the partnership.
The deal positions both companies to capitalize on the accelerating demand for AI‑enabled data‑center infrastructure. While JEV’s recent losses signal financial risk, the partnership’s focus on leveraging existing energy assets could mitigate capital costs and accelerate deployment. For CHCI, the venture offers diversification beyond its traditional real‑estate holdings and a foothold in a high‑growth technology sector. The joint venture’s success will hinge on timely regulatory approvals, effective integration of energy and real‑estate assets, and the ability to attract and retain AI‑centric tenants in a competitive market.
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