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Dual-fuel company Clean Air Power raises £5 million; Abramovich with 1.5% stake
24 August 2013
UK-based dual-fuel system company Clean Air Power (CAP) has raised £5 million (US$7.8 million), bringing in two new strategic investors: Ervington Investments Ltd, whose ultimate beneficial owner is Roman Abramovich, and Zara Shvidler. Together, these two investors committed to subscribe, if necessary, for the entire placement, which contributed significantly to the successful fundraising, according to the company.
As a result of significant institutional interest, the subscriptions of each of Ervington and Shvidler were scaled back and they will each have an interest in approximately 1.5% of the enlarged share capital of the company.
Abramovich is a Russian billionaire, perhaps best known outside Russia as the owner of the Chelsea Football Club. Shvidler, the Telegraph reports, is the wife of a close friend of Abramovich. News of the investment sent CAP stock up 32.4% on hopes that the Abramovich stake will help CAP with business in Russia, which is putting a push on natural-gas fueled transportation (e.g., earlier post).
CAP said it will use the proceeds of the round to strengthen its balance sheet ahead of future partnerships, to supplement working capital and to support marketing and sales activities in Russia and the US. Russia is an increasingly important market for Clean Air Power with demand for natural gas vehicles expected to grow significantly as major Russian gas companies plan to invest heavily in expanding the gas refueling network.
In the US, Clean Air Power recently announced an agreement with UPS to install and trial 10 of its trucks with the Group’s US version of its Dual-Fuel system. (Earlier post.) Commercial production of a US Genesis-EDGE product is expected to start in early 2014.
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