Dissemination of a Regulatory
Announcement that contains inside information for the purposes of Regulation 11 of the Market Abuse
(Amendment) (EU Exit) Regulations 2019/310.
13
March 2024
CAP-XX
Limited
("CAP-XX" or the
"Company")
Corporate
update
CAP-XX, a world leader in the design
and manufacture of supercapacitors and energy management systems,
provides the following update in relation to its working capital
position.
On 1 February 2024, CAP-XX announced
its interim results for the six months ended 31 December 2023
("Interim Results"). In the Interim Results announcement, it was
stated that the Company had cash reserves as at 31 December 2023 of
A$0.3m and an unused line of credit of approximately A$1.5m.
In that announcement, the Company's Chairman also stated that the
legal costs and unexpected expenses in relation to the departure of
the former CEO and investment in new product developments had
resulted in the Company's adjusted EBITDA remaining negative and
the Company's cash position being tight and that the Board was
managing the Company's cashflows carefully.
Despite these efforts, the Company's
working capital position has continued to deteriorate. This
is due to a combination of (i) higher than anticipated legal costs
associated with the Company's patent infringement litigation; and
(ii) revenue and cash receipts for the first eight weeks of the
current calendar year being lower than expected, despite the
encouraging order book. In addition, the revolving line of
credit associated with the Company's R&D facility is fully
drawn down to the extent that expenditure has currently been
incurred.
As a result of this, the Board has
been exploring raising additional financing. The Board has
considered debt and sale/leaseback structures but has established
that these are not available to the Group. The Board has also
been exploring raising additional equity financing and these
efforts continue. However, this process is taking
longer than anticipated and, whilst the Board has continued to
manage CAP-XX's working capital, the Group is now in a highly
constrained financial position as highlighted above and requires
additional financing by the end of this month.
There is no guarantee that an equity
financing will be achievable and, in the absence of any additional
financing being available, the Board would have to take steps to
preserve and maximise value for its creditors and should the
Company fail to achieve a solution in the short term, the Board
would have no option but to place the Company into administration.
In this eventuality, it is not known how much, if any, value would
be returned to shareholders.
A further update will be provided in
due course.
For
further information contact:
CAP-XX Limited
Pat Elliott (Chairman)
+61 (2) 9157
0000
Lars Stegmann (Chief Executive
Officer)
Allenby Capital (Nominated Adviser and Joint
Broker)
David Hart / Piers Shimwell
(Corporate Finance) +44
(0) 20 3328 5656
Tony Quirke / Stefano Aquilino
(Sales and Corporate Broking)
Cavendish Securities plc (Joint Broker)
Neil McDonald / Pearl
Kellie
+44 (0) 13 1220 6939
Kreab (Financial PR)
Robert Speed
+44 (0) 20 7074
1800
Notes to Editors:
CAP-XX (LSE: CPX) is a leader in the
design and manufacture of thin, flat supercapacitors and energy
management systems used in portable and small-scale electronic
devices, and to an increasing extent, in larger applications such
as automotive and renewable energy. The unique feature of CAP-XX
supercapacitors is their very high power density and high energy
storage capacity in a space-efficient prismatic package. These
attributes are essential in power-hungry consumer and industrial
electronics, and deliver similar benefits in automotive and other
transportation applications. For more information about CAP-XX,
visit www.cap-xx.com