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(Alliance News) - Supercapacitor maker Cap-XX Ltd said Friday it agreed to buy the equipment from Japanese firm Murata Manufacturing Co Ltd to increase its production capacity by three times.
To help fund the deal and other working capital needs, Cap-XX proposed to raise up to GBP3.5 million through a discounted equity raise.
Cap-XX said it agreed to buy the equipment currently being used in the supercapacitor production lines of Murata. This was after a change in strategy of Murata - which is a licensee for Cap-XX technology - resulted in the assets being put up for sale.
The Lane Cove, Australia-based firm said the buy "represents a compelling opportunity to acquire high-quality, modern supercapacitor manufacturing assets, which have become available to CAP-XX at a very low cost."
To fund the deal, Cap-XX has conditionally raised GBP2.6 million through a placing of 87.0 million at 3.0 pence per share. Shares in Cap-XX were 13% lower at 3.17 pence in London on Friday.
In addition, the AIM-listed company conditionally raised another GBP140,000 through a 4.7 million share subscription at the same price as the placing.
The funds from the placing and subscription will be used to fund the acquisition and the integration of the assets.
"We are delighted that CAP-XX will become the owner and operator of Murata's supercapacitor production lines, which will increase our production capacity approximately three times once the lines have been transferred," Chief Executive Anthony Kongats said. "We would like to thank our new and existing shareholders for their continued support."
Cap-XX also proposed an offer to qualifying investors of up to a further 25.0 million shares at the placing price. This could raise up to GBP750,000, with proceeds to be used to fund working capital needs.
By Ahren Lester; ahrenlester@alliancenews.com
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