capAI signs heads of terms with R42 for AI book-to-film platform

LONDON - capAI plc (LSE:CPAI) has entered into non-binding heads of terms with R42 Group LLC for Movie42, an artificial intelligence platform designed to convert written content into cinematic storyboards, scripts, and production-ready visual assets, according to a company press release issued Tuesday.

The AI-powered book-to-film platform remains under active development, with delivery of a minimum viable product targeted by March 31, 2026. The proposed transaction is subject to regulatory approval and finalization of a definitive license and option agreement.

Under the proposed terms, capAI would receive an exclusive worldwide license to operate the Movie42 platform for 12 months after the platform is deemed ready for commercialization, with no upfront payment required. During this period, capAI would retain full commercial control and 100% of generated revenue.

The agreement includes an option for capAI to acquire 100% of the Movie42 intellectual property during the license period for £2 million in new ordinary shares. If exercised, R42 would also be entitled to 20% of any net proceeds from future monetization or sale of the Movie42 IP.

Movie42 is being developed to automate traditionally manual workflows in pre-production, including generating pitch decks, storyboards, and draft scripts directly from written works. The platform aims to serve independent creators, production studios, and literary IP owners.

Professor Ronjon Nag, Executive Director of capAI and Founder of R42, has recused himself from all negotiations and approvals relating to the proposed transaction from capAI’s perspective.

The AI in film market, covering pre-production activities such as script generation and storyboarding, is projected to expand from $1.8 billion in 2024 to approximately $14.1 billion by 2033, according to data cited in the press release.

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