REG - CAP-XX Limited - Corporate Update

CAP XXAnnouncement

13/03/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240313:nRSM6636Ga&default-theme=true

RNS Number : 6636G  CAP-XX Limited  13 March 2024

 

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 (http://www.cap-xx.com)

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDJJMFTMTIBMPI