CityView to raise $2.3m in entitlements offer

Perth-based CityView Corporation Ltd aims to raise $2.3 million for working capital through an entitlements offer of one option for every five shares held, the company has announced.

The full text of a company announcement is pasted below

CityView Corporation Limited ("CityView" or "the Company") is pleased to announce that it intends to offer its shareholders the opportunity to participate in a non-renounceable entitlements offer to acquire one option in the Company for every five shares held. To participate, shareholders must be listed on the CityView share register on a record date to be announced.

CityView will apply to ASX for quotation of the options and also for the underlying shares that are issued on the exercise of the options. The options will be issued at four cents payable and accordingly the entitlements offer is expected to raise approximately $2,273,000 before the costs of the offer.

It is intended that the options will be exercisable by option holders at any time prior to 30 November 2009, at an exercise price of 15 cents.

The option issue will not be underwritten; however the directors reserve the right to issue any shortfall at their discretion. Directors will not be entitled to participate in any shortfall take up.

The Board of CityView is pleased to be able to offer the shareholders of the Company this opportunity to further participate in the Company's growth and experience added leverage to the future success of the Company.