Post EGM Update

The EGM has finally come and gone.  There are quite a lot of debriefing activities we need to get through however rest assured we will be posting a full report here as soon as possible.  Some key points to expect:

• A full transcript of the meeting thanks to our volunteer stenographer (now available in latest updates)
• Voting outcomes and some very interesting post-vote analysis (now available in latest updates)
• Forward strategy possibilities
• And most importantly, how we intend to engage the very significant shareholder base that supported this action, in order to determine the forward objectives and path from here on.

We thank all of you for your support and look forward to your feedback once full reports are posted here.

A call for CVI Share Holders to take Action

Where has my investment gone?

How do I get it back?

92% of canvassed shareholders signed their names to this EGM request believing it will help to restore their investment.  

These are the two questions many Cityview shareholders are asking themselves at the moment.  You may also ask if this shareholder EGM action will help?  The 116 shareholders signatories to the EGM request obviously think so.  To give that some perspective we canvassed some 126 shareholders for their support in this action.  92% agreed.  With such an overwhelming response rate it is in your interests as a shareholder to find out why they agree.

Who are the Cityview Shareholders Collective?

For most of Cityview’s recent history there has been a very large group of interested shareholders following the company’s progress closely and in contact with each other via the internet.  This group has collectively conducted enormous amounts of research into the background of the company and communicated frequently with the company CEO (Mark Smyth).

Cityview is an incredibly complex company that takes most shareholders months of research to understand but it is fair to say that this group has as good an understanding of the company’s activities as anyone outside the company could have.  And they are very concerned… Why?

The last 12 months have been a downward spiral  for CVI shareholders, with share holder value severely diminished and a plethora of announcements all seemingly amounting to nothing of consequence.

There is no question that share holder's interests have been severely compromised over the last 12 months as per:

• Massive shareholder dilution with nothing to show for it
  
• $12 million dollars given to Pensador without appropriate Due Diligence exercised
• 450 million shares now to be placed at the discretion of directors diluting share holder interests further
• Continual placements that invariably get sold into the market depressing the share price
  
• An oil deal announced privately to share holders that never actually materialised
• Supposed acquisition of mining projects without proof of title and announced exploration programs never initiated
• Unprofessional conduct of Directors in email exchanges with share holders whereby rumours have flourished
• Numerous announcements about huge deals offering massive future potential that never seem to get consummated
• Transparency issues with the way placement funds are handled

• It is almost impossible to find a detail that can be independently verified.
• Not one of these has progressed to a signed off deal or even to a point where tangible details are available.
• Most deals are accompanied by a share placement to pay associated costs.
• In many cases we have no details about how this raised money was spent.
• It appears that almost all of these placed shares are immediately sold back into the market, mostly at an apparent loss.  In fact we have failed to find evidence that a single 'Global related placement recipient in the last year has kept their shares.

Whilst it is fair to attribute some of Cityview's problems to the global financial crisis this is by no means the full story.  Market confidence in the company is shattered.  Shareholders have been told about numerous huge projects on the verge of fruition over the past two years yet not a single one has produced a tangible result.  More concerning for shareholders is the difficulty of independently verifying many of the company's claims, so much so that doubts have been expressed as to the legitimacy of the company's legal title to many of their projects.

It should be a simple matter to address these concerns and definitively put such doubts to rest.  Several requests have been put to the company to do so but we are as yet to see a response.

And NOW?

The CVI board has shown contempt for shareholder requests for transparency by recommending you vote AGAINST disclosure and audit (resolutions 4-7) and by presenting them in a way that they can be ignored by the Board at their whim. 

ENOUGH IS ENOUGH

It is time to act to ensure that the Board is strengthened to protect the interests of share holders

Our attempt to enforce transparency has been sidestepped by the Board in the way they have presented the EGM Resolutions. Make sure that you at least vote YES to resolutions 8, 9 and 10 to ensure 4 new 'share holder focused' directors are appointed to a re-structured CVI board.

CVI Share holders need to act as a collective NOW to try and right the many wrongs with this company. After all, "What have we got left to lose?"

To get a fuller picture of what this shareholder action is all about and what we hope to achieve we recommend you thoroughly peruse all the pages on this site between now and registering your proxy vote...........

Where to Start?

You will already be familiar from the member's statement sent out with the EGM notice, of the role Global Investments UK (and related companies) have played in the company's recent history.  It has transpired since the request for EGM was lodged that Pinnacle is not appropriately licensed to underwrite the recent rights issue.  As a result the board has effectively gained the right to place more than 450 million shares at their discretion.  Normally an issue of shares on this scale (anything beyond 15% of issued capital) would require shareholder approval.  There is good reason for this 15% limit being imposed by law.  It is so that control of the company cannot be handed over by the Board of Directors without convincing shareholders it is in their best interests.  Yet the way things have transpired this requirement has been sidestepped.

Understanding Cityview is no easy task.  The relevance of this shareholder action and resolutions proposed may be more easily grasped with a solid understanding of the company's background. To assist you in improving your knowledge of the company we suggest a number of resources:

1. Firstly we suggest you read our comments on the resolutions we've proposed.
2. The ASX announcements will show you the public face of Cityview.
3. In our Links menu you will find Trent's CVI Research Site which contains a lot of consolidated research and well put together flowcharts which will help to explain the intricate interconnections of companies and people associated with Cityview.
4. If you have further questions you can either submit them to us for inclusion in the FAQ or we suggest joining the Cityview Investors Forum (also in our Links menu) which is frequented by many shareholders who are very knowledgeable about CVI.  There is a wealth of information already on the forum and some very helpful posters who will be able to answer many of your questions.

Simply reading about the proposed actions and the rationale behind them will also be an informative exercise.

If you have questions, criticism, feedback etc. you are most welcome to contact us anytime.  May we suggest you read the list of FAQ's that have been posed to us and to CVI management

We will periodically be adding updates and new articles to this website so we recommend checking back frequently or using the subscribe feature to be informed of updates.  If you are a Cityview shareholder and would like to submit an article for inclusion on this site please contact us.