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LONDON - capAI plc (LSE:CPAI) has signed non-binding heads of terms with R42 Group LLC for the exclusive licensing of Author42, an AI publishing platform, the company announced Monday.
The agreement will form the foundation of capAI’s new division, capMedia, which aims to serve the publishing industry with AI-powered content creation tools. Author42 combines narrative tools, character development, plot structuring, and market intelligence to support authors and content creators.
Under the proposed transaction, capAI will receive a 12-month exclusive worldwide license to operate the Author42 platform with no upfront fee. The company will retain full commercial control and all revenue generated during this period.
capAI will also hold an option to acquire the underlying intellectual property for £2 million in new ordinary shares, with R42 entitled to 20% of any future net proceeds from monetization or sale of the platform if the option is exercised.
The platform targets the global publishing industry, which is projected to grow from £116 billion to £147 billion by 2030, according to figures cited in the press release. The AI in publishing market specifically is expected to expand from $3.6 billion in 2024 to $41.2 billion by 2033.
"This proposed transaction marks a significant step in our commercialisation strategy," said Richard Edwards, Executive Chairman of capAI, in the statement.
Professor Ronjon Nag, Executive Director of capAI and Founder of R42, has recused himself from negotiations and approvals related to the transaction. The company has implemented governance protocols including independent review of the terms.
The transaction remains subject to regulatory clearance, after which the parties intend to execute a definitive license and option agreement. The Author42 platform is expected to be available in beta shortly, with broader commercial release anticipated as the platform matures.
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