termination of underwriting arrangements

Seriously CVI rock from one misadventure to another, underwriter wasn't licensed to conduct underwriting arrangements. What a shocker!


Termination of Underwriting for Non-Renounceable Entitlements Issue

The Company wishes to advise that it has decided to terminate the underwriting arrangements with Pinnacle Capital Management Limited (Pinnacle) in relation to the Company’s pro rata non-renounceable entitlements issue which was announced on 7 November 2008 (Entitlements Issue).
The decision to terminate the underwriting arrangement was made by the Board after it became aware that Pinnacle was not appropriately licensed to conduct the underwriting in accordance with the Corporations Act 2001 (Cth), despite warranties and representations being made by Pinnacle to the contrary under the underwriting agreement. CityView was not aware of Pinnacle’s failure to be licensed before the offer document was despatched to shareholders on 21 November 2008 (Offer Document).
In accordance with section 1.1 of the Offer Document, where the Underwriting Agreement is terminated for any reason prior to completion of the Entitlements Issue, the Company will issue any shortfall from the Entitlements Issue at the Directors discretion.
The Company will issue any shortfall shares from the Entitlements Issue within 3 months after the Closing Date for the Entitlements Issue, being 5 December 2008, in accordance with ASX Listing Rule 7.2.
The Entitlements Issue will not be affected in any other way by the termination of the underwriting arrangement.