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Home EGM Docs Members Statement

Members Statement - included to be distributed with EGM notice

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These are the documents that were sent out to shareholders who were interested in requesting an EGM.  They are presented here 'as is' for your reference.

A few of the details are not quite relevant now due to the rapidly changing nature of the situation however for the most part this should demonstrate the intent behind shareholder action so far...

For up to date commentary on the EGM resolutions please see the "Shareholder Action" menu.


 

Members Statement:

 Notes to be Attached with EGM Voting Documents

This EGM has been called by a substantial sized group, or "collective", of concerned shareholders that have pledged overwhelming voter rights support for the EGM action expressed herein.
We now seek your support.

One component of the EGM action is an objection to the recently announced non-renounceable rights issue. It is clear to us that this rights issue will not be taken up in any significant numbers. The anticipated net effect of this rights issue is likely to be that almost 50% of Cityview shares will end up in the hands of the underwriters, Pinnacle Capital Management Limited.

We are very concerned about the recent influence and involvement of directors / shareholders involved in Pinnacle Capital Management, and the adverse impact they have had on the company’s share performance to date.
You will see from the table below that there is a tight and undeniable relationship between 3 companies, namely, Pinnacle, Global and Saphi, including the fact that they ALL share the same address.

PRINCE CONSORT HOUSE
ALBERT EMBANKMENT
LONDON
SE1 7TJ

Clearly, the three can be interpreted as one.

Global Investment Strategy

Shareholder(s)
John William Gunn 97,500 shares
Ian Hugh Van Stratum 32,500 shares
Director(s)
John William Gunn
Ian Hugh Van Stratum
Monica Encarnacion

Saphi Asset Management
Shareholder(s)
Ian Hugh Van Stratum
Directors(s)
Ian Hugh Van Stratum

Pinnacle Capital Management
Shareholder(s)
John William Gunn
Director(s)
John William Gunn


Numerous private placements of Cityview shares have been made through Global and Saphi since November 2007. In fact nearly 100 Million shares have been placed by these companies, the result of which, without fail, is that these newly placed shares have been steadily sold on market.
Much of this sell down was done through a company (Easyoffice) in which the director was also a Canzar director

Whilst the global financial crisis can in part be blamed for the steady fall in Cityview’s share price it must be acknowledged that this constant sale of shares has played a significant role.

It would appear that those connected to Global and Saphi will now be offered another opportunity to “manage” several hundred million more CVI shares, at about 1/20th of its price six months ago, this time through an underwriting proposal with Pinnacle Management.
It is our opinion that we cannot trust Pinnacle management with this opportunity, and it is absolutely unknown to us why CVI would allow them to “participate” given the historic performance of Global and Saphi.

We would like to stress the importance of this EGM action to your shareholding. Our primary aim is to restore accountability and transparency to our company so it can move forward successfully.
To that end we have proposed several more resolutions that will work towards the stated objectives of company transparency and accountability and have an ultimate objective to see the company prosper into the future.

They include:
That we restructure the Board of directors and make the CEO more accountable to the board and to his/her shareholders, and modify the relationship between the board and its CEO. We aim to reduce the company risk that is apparent when one key person has so much influence and control over the company.

Knowledge is power, and that applies for shareholders as well.
Shareholders need to be better informed. If the resolutions are passed each of us will get a clearer picture of what is happening to OUR assets. Resolutions 3,4,5,6 and 7 insist on the sharing and release of critical information previously denied.

We seek fairness for option holders that have seen the value of their options decimated by careless share dilution that appears to have provided nothing in return.
Resolution No. 8 aims to bring back some value to the options.

To achieve the above, some minor changes are needed to the Cityview constitution and to place new people into the company. These new people are not corporate high fliers, they are decent committed people just like you, who have said enough is enough. They do not intend to take over your company but will work with the existing directors to represent you and steer the company away from its current state of stealth to one that is open and accountable.

As mentioned before, we need your support to help get Cityview back on track.
Please vote in favour of each resolution to make your mark in protecting and enforcing shareholder rights and best interests for future success.

We thank you and urge you to return your voting papers promptly with your crucial positive vote for this new future, enabling restored shareholder value and confidence for future success.
Future unambiguous reporting via ASX announcements will also assist shareholders to make better informed decisions on their investments.

There is a great deal more to this story but the corporations act only permits us to include 1000 words in this explanatory statement.

We urge you to visit: www.cvi-shareholders.org where a summary of the situation and also some detailed research and explanations have been made available, along with information on all the Director nominees.

If you would like to place your votes in the hands of a proxy so that any last minute developments can be accounted for by that proxy on your behalf please see the above website for further details on how this can be done and what options you have for setting conditions on how your vote will be cast.

 

VOTE YES FOR TRANSPARENCY, HONESTY AND TO HELP REBUILD CITYVIEW’S DAMAGED REPUTATION.

 

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