Dual-fuel technology designer Clean Air Power (CAP:AIM) is set to accelerate its expansion into key US and Russian markets backed by last week’s £5 million cash call.

The fresh money eases any impending funding concerns ahead of full-scale production in 2014, with trial vehicles set for road tests before the end of 2013. The market should now be able to focus on the firm’s exciting growth prospects.

Despite a 22% rally on news of last week’s successful placing (23 Aug), the counter has further to go. Such was demand for new stock that funds were raised at 9.625p, 10% above the average price over the preceding month.

Russian billionaire, and Chelsea football club owner, Roman Abramovich’s keenness to entirely underwrite the placing, although it was in the end opened up to institutional investors, may perhaps explain why the offer was so well received. The oligarch’s holding stands at 1.5%.

Such was demand in the market following the raise that the counter ended the day at 12.25p, versus the previous period’s 9.25p close. In October Abramovich paid nearly £9 million for 15% of fuel cells developer AFC Energy (AFC:AIM) in what has proven to be a highly successful investment.

Since we first flagged the emerging expansion opportunity at 8.75p (see Small Caps, Shares, 11 Jul) it has soared 40%. Last year Clean Air Power posted losses of £2.2 million on £7.9 million sales as it invested in its technology. Close on £2.5 million of cash was consumed during the period.

Analysts at Cantor Fitzgerald expect revenues of £11.1 million this year before doubling in 2014 to £22.2 million and have a 19p price target.

Shares says: Funds in place to maximise exciting opportunity. Buy at 12.25p.