capAI signs licence agreement for Author42 AI publishing platform

LONDON - CapAI plc (LSE:CPAI) has executed a definitive Licence and Option Agreement with R42 Group LLC for Author42, a generative artificial intelligence publishing platform, the company announced Today.

The agreement, which follows non-binding heads of terms announced on July 7, gives capAI immediate control of the platform without any upfront payment and marks the formal launch of capMedia, the company’s dedicated AI-led publishing division.

Under the 12-month agreement, capAI has secured exclusive worldwide rights to use, develop, commercialize and sub-license the Author42 platform with full operational control. The company also has a discretionary option to acquire full ownership of the intellectual property associated with Author42 for £2 million, payable in shares or a combination of shares and convertible loan notes.

Author42 is described as a next-generation AI platform designed to assist authors, publishers, and content creators in producing fiction and non-fiction works by integrating narrative generation, character development, and market intelligence.

If capAI exercises its option to acquire the platform, R42 will be entitled to 20% of net proceeds from any future sale or monetization of the Author42 intellectual property. If the option is not exercised within the licence period, all rights revert to R42.

The agreement constitutes a material related party transaction as Professor Ronjon Nag, an Executive Director of capAI, is connected with R42 Group. Independent (LON:IOG) directors Richard Edwards, Sarah Davy and Marcus Yeoman approved the transaction, with Professor Nag recusing himself from deliberations.

"This LOA signals the official launch of capMedia and our broader intent to redefine publishing using AI," said Richard Edwards, Executive Chairman of capAI, in the press release statement.

The company indicated it may seek shareholder approval for the potential acquisition at a forthcoming general meeting, as exercise of the option would constitute a substantial property transaction under UK Companies Act regulations.

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