Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Optare gets first zero emmission bus order in UK, raises £2.2 mln in placing

Optare (AIM: OPT) has received the first order under the UK government's Green Bus Fund, from Durham County Council which has placed an order for Optare’s Solo EV Zero emission bus.

Details of the order were not disclosed. The board expects to receive further orders supported by the Green Bus Fund during 2010.

Optare has announced it raised also raised £2.2 million to support the working capital required to meet current order book demand and its export prospects.

Optare placed approximately 37 million new ordinary shares at 6 pence per share to institutional investors, other investors and members of the board. The placing shares represent approximately 13.8% of the company's enlarged issued share capital.

Additionally, Optare intends to issue to the participating investors and Cenkos Securities warrants to subscribe for approximately 39.7 million shares with an exercise price of 6 pence. The warrants can be exercised for up 24 months from the issue date and would raise a further £2.2 million if fully exercised.

Disclosure: The author holds no positions in the company