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CALPROP EXTENDS SHAREHOLDER RIGHTS OFFERING TO SEPTEMBER 15; PLAN TO RAISE MORE THAN $4 MILLION IN ADDITIONAL CAPITAL

 LOS ANGELES, Aug. 16 /PRNewswire/ -- Calprop Corp. (AMEX: CPP), a California home builder, today announced it will extend its shareholder rights offering to Sept. 15. Originally, all shareholders needed to return their subscription forms to the company by Aug. 27, 1993.
 As announced on July 27, the company is undertaking a rights offering to existing shareholders to raise additional capital. If all current shareholders chose to subscribe the offering will raise approximately $6.0 million. The offering will only be consummated if at least 3.4 million rights, valued at $4.3 million, are exercised.
 Each Calprop shareholder of record on July 15, 1993, will receive one right for each share owned on that date. Each right entitles the shareholder to purchase one share of preferred stock for $1.28 per share. The preferred stock will accrue dividends of 13 cents per year, yielding approximately 10.2 percent. However, under Calprop's current loan agreements the company will not be able to pay out dividends in cash, and it is uncertain when cash payments of dividends can begin. Alternatively, each share of preferred stock will be convertible into 1.28 shares of common stock, effectively valuing the common stock at $1.00 per share.
 Two principal shareholders have committed to purchase their pro rata portion, approximately $2.8 million, which will provide sufficient capital to complete Calprop's current projects, which in turn should provide sufficient cash flow to start new projects in 1994.
 Shareholders of record should have received a registration statement for the offering and a subscription form directly. Shareholders in street name are advised to contact their brokers to ensure they receive the offering documents.
 Calprop builds quality homes in some of the state's most desirable communities in both Northern and Southern California. The company's common stock is traded on the American Stock Exchange under the symbol CPP.
 -0- 8/16/93
 /CONTACT: Stuart Eigler of Calprop, 310-306-4314; or Lise Needham, 415-986-1591, or Nick Farina, 312-266-7800, both of the Financial Relations Board for Calprop/
 (CPP)


CO: Calprop Corp. ST: California IN: SU: SRP

TM -- SF006 -- 2901 08/16/93 09:01 EDT
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Publication:PR Newswire
Date:Aug 16, 1993
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