RE: Rns10 Jul 2025 08:00
10 July 2025
capAI plc
Incorporation of capMedia Inc and US Operational Plans
capAI (LSE: CPAI) announces the incorporation of capMedia Inc, a wholly-owned US subsidiary of the Company to support the Company's broader media-focused activities in the United States.
The incorporation of capMedia Inc in the State of Delaware represents an operational milestone in the strategic development of the Company's media division, known as capMedia. It lays the foundation for future commercialisation efforts, including the proposed deployment of the Author42 platform ("Author42"), a generative AI publishing platform, subject to regulatory consents and the execution of definitive agreements.
The Company intends to apply for an operational licence for capMedia Inc to do business in the State of California.
Once licensed, capMedia Inc will serve as the principal US vehicle for media initiatives under the capMedia division.
The Company shall seek further operational licenses for capAI Inc to do business in additional US States as necessary from time to time.
Strategic Rationale
Delaware has been selected for incorporation due to its established legal framework for corporate governance and investment. California has been selected for operational licensing to align with the Company's objective of accessing the innovation and talent ecosystem of Silicon Valley, where strategic partner R42 Group LLC ("R42") is based.
This structure reflects the commercial intention to operate in the US market and supports the transatlantic positioning of the capAI-R42 strategic alliance (the "Alliance"), which brings together UK-listed capital discipline with US innovation.
Next Steps
The Company envisages the following upcoming newsflow:
· Updates regarding regulatory clearance for the licence and option agreement in connection with Author42 ("LOA");
· Subject to such clearance being obtained, entry into a definitive LOA; and
· capMedia Inc beginning commercial operations in California.
For the purposes of UK MAR, the person responsible for arranging release of this Announcement on behalf of capAI is Richard Edwards, Executive Chairman.