capAI signs license agreement for AI-powered book-to-screen hub

LONDON - capAI plc (LSE:CPAI) has executed a definitive License and Option Agreement with R42 Group LLC for Creator42, an artificial intelligence-powered creative hub designed to transform written works into cinematic content.

The agreement, announced today, follows the non-binding heads of terms between the companies disclosed on August 5. Creator42 comprises three complementary products: Sizzle42 and Teaser42, which generate cinematic trailers for social media platforms, and Movie42, which focuses on long-form adaptation.

Under the agreement, capAI has secured exclusive worldwide rights to use, develop, commercialize and sub-license Creator42 for 12 months, with an option to acquire full ownership of the intellectual property. The license period will commence only upon delivery of a mutually agreed completion notice confirming Creator42 is ready for commercialization.

The agreement carries no upfront payment, with R42 targeting delivery of a minimum viable product by September 30, significantly earlier than the March 31, 2026 target initially envisaged. If capAI exercises its option to acquire the Creator42 IP, it will pay £2 million through the issuance of new ordinary shares or a combination of shares and convertible loan notes.

"Creator42 represents a major milestone for capAI and capMedia. By bringing forward MVP delivery to September 30, 2025, we are now positioned to enter the burgeoning social-first video market much earlier than planned," said Richard Edwards, Executive Chairman of capAI, in the press release statement.

The transaction constitutes a material related party transaction, as Ronjon Nag serves as both an Executive Director of capAI and has connections to R42 Group. Independent directors of capAI voted on the agreement, with Professor Nag recusing himself from deliberations.

If capAI exercises its option to acquire Creator42, the company may seek shareholder approval at a forthcoming general meeting, as the transaction would constitute a substantial property transaction under the UK Companies Act 2006.

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