Optare raises £7.4m to fund expansion and pay off troubleshooting loan

Bus manufacturer Optare has raised £7.4m through the issue of new ordinary shares to fund a relocation from its current Leeds factory, provide working capital and reduce borrowings.

Production is expected to transfer from the Leeds site to a new location in Sherburn, close to Optare’s existing plant, during the second half of 2011. The move to the new facility will represent the completion of Optare's site rationalisation programme, with three constrained production facilities being...