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Eco City Vehicles gets cash injection from MXC Capital

As an investing company, Eco City must complete an acquisition by January 20.

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Eco City is looking to invest in the technology sector

AIM-listed cash shell Eco City Vehicles (LON:ECV) received a boost today as MXC Capital Markets pledged to invest £1.3mln in the former taxi supplier.

Eco City is looking to invest in the technology sector, and is issuing 409mln shares at 1.22p per share to raise around £5mln.

MXC will take a 24.7% stake in Eco City for £1.3mln as part of the fundraising and will act as its financial adviser.

Last year, Eco City, which had supplied London’s licensed low-emission Mercedes Vito taxis, went into administration, although it later exited administration via a company voluntary agreement.

It blamed the controversial Uber taxi app and Mayor Boris Johnson’s environmental proposals for a lack of demand.

The company was the biggest gainer on Tuesday, as its shares rocketed 140%, or 2.6p to 4.5p.

As an investing company, Eco City must complete an acquisition which constitutes a reverse takeover by January 20.

In addition to the subscription, the directors are subscribing for 3.2mln shares in lieu of receiving unpaid directors' fees of £40,000.

Quick facts: Eco City Vehicles

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AIM:ECV
Market: AIM
Market Cap: -
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