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Green vehicle maker raises funds ready to expand

UK green vehicle manufacturer Eco City Vehicles has raised £1.53m for investment through a share placing.

ECV, which builds low emission LCVs and the London licensed Mercedes Vito premium taxi in Coventry, wants to use the funds to grow the business and address export opportunities for the Middle East.

It has announced a conditional placing of 32,200,000 ordinary shares at 4.75 pence per share.

The placing is ECV's first fund raising since its flotation on AIM via a reverse takeover in October 2007.

Its Vito has gained a significant market share of new licensed taxis in London that increased to approximately 27% in the first half of 2010.

Two left hand drive Vito prototypes have been delivered to Abu Dhabi, where the Government is investigating the possibility of introducing a superior vehicle to the Abu Dhabi taxi fleet.

A formal proposal has now been submitted to the Abu Dhabi transport authority, for the supply of the Vito taxis.

Part of the funds will be used to buy a majority share of ECV's technology partner, One80, which owns the rights to the rear steer technology used on the Vito taxi.

Peter DaCosta, chief executive of ECV, said: "We have made great strides in developing the business since we floated. The Vito taxi continues to gain traction and we are becoming increasingly confident of opening up significant new markets abroad. The funds provided by this placing will give us the resources to take full advantage of our growth opportunities."

ECV also announced the appointment of non-executive director Roger Phillips, former boss of Iveco Ford, Leyland DAF and DAF Trucks, and resignation from the board of Guy Saxton.

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