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Hayashi - The DMH is an ultra-thin supercapacitor with a wide operating temperature range. At only 0.4mm thick it is targeted at smart phones, smart credit cards, wearable devices, 3V coin cell battery applications and other 'Internet of Things' applications where thickness is critical.

Murata's supercapacitor production lines are newer than CAP-XX's own production line and have a production capacity that is approximately three times greater than CAP-XX's current production facilities.

From CAP-XX's RNS on 29 November 2019

Hayashi - CAP-XX’s new 3V chemistry can be used in the Murata’s manufacturing lines. CAP-XX will have three product tiers post the transaction.

From Allenby Capital Research Note on CAP-XX

CAP-XX, the leading designer and manufacturer of prismatic and cylindrical can supercapacitors, has conditionally raised £2.75m and is looking to raise a further £0.75m via an open offer to fund the acquisition, relocation and recommissioning of certain manufacturing assets from Murata, a long-standing CAP-XX IP licensee. The proposed transaction represents a unique opportunity to transform CAP-XX’s profitability by increasing sales and gross margin at the product level for a minimal capital outlay and enable CAP-XX to fulfil the record level of sales enquiries. The deal provides access to established product designs, proven manufacturing assets and potential customers in CAP-XX’s target small form factor markets. It should also help with CAP-XX’s IP licensing strategy and accelerates its 3V roadmap. The acquisition will impact CAP-XX’s royalty revenues in the short-term and group gross margin but gross profit growth should accelerate and more than compensate. This should hasten CAP-XX’s move to profit.

Under the proposed transaction, CAP-XX will acquire certain Murata supercapacitor manufacturing assets, IP and product designs for c. A$670k (£360k) and relocate them to Australia. The total project budget is A$5.8m (£3.1m). Murata has invested more than US$100m in these supercapacitor manufacturing operations to date and CAP-XX estimates the replacement cost of the third-generation manufacturing lines at A$50m to A$100m. Although Murata has built some revenue (c. A$13m p.a.), the division represents a very small part of Murata’s overall business. The acquisition addresses CAP-XX’s need to increase its own manufacturing capacity.

Murata is CAP-XX’s oldest IP licensee having signed its first agreement in 2008 and has developed five products in the DMT, DMF and DMH series that CAP-XX is proposing to acquire. As Murata has focused on higher levels of automation and fewer products, it enjoys longer product runs and this benefits gross margins and minimises downtime. CAP-XX’s new 3V chemistry can be used in the Murata’s manufacturing lines. CAP-XX will have three product tiers post the transaction.

The proposed decommissioning, relocation and recommissioning is scheduled to be completed during FY20 with CAP-XX’s first shipments from the new line starting in Q1 FY21. In the run up to decommissioning, Murata is building stock to ensure supply continuity to existing customers. As a result, we would anticipate royalty payments from Murata in FY20 but no product sales for CAP-XX from the new lines. The bulk of the costs associated with the move should fall into FY20 and there will be a small increase in the ongoing operating cost base thereafter.

From Allenby Capital Research Note On CAP-XX

http://www.allenbycapital.com/research/research-cpx_31_3866217389.pdf

CAP-XX is a London listed supercapacitor company. Supercapacitors store electrical energy and are used a bit like batteries to power a whole host of different devices. CAP-XX sell supercapacitors around the world to lots of big named companies. CAP-XX’s headquarters are in Sydney where R&D, Sales and Admin functions are carried out. Production is in Sydney and Malaysia with customers all round the world.

The acquisition of Murata’s supercapacitor production lines is very exciting and truly transformational for CAP-XX. It’s not often a business like CAP-XX gets an opportunity like this to add a lot of new customers as well as acquiring Murata’s customers too. CAP-XX gets the Murata supercapacitor production lines for a minimal capital outlay, much cheaper than it would cost CAP-XX to replicate this. The products made on these production lines are very complimentary to CAP-XX’s sales, products and markets. This acquisition of Murata’s production lines works on so many levels for CAP-XX.

The products made on Murata’s production lines cost less to make so it will improve CAP-XX’s gross margin as well. Down the track it will also assist CAP-XX with their product map and with their licencing strategy as well. This is a great deal for CAP-XX. It’s a win win all round.

This acquisition from Murata has consumed everyone at CAP-XX for the last 18 months as it’s been a big deal. CAP-XX haven’t been allowed to tell investors until now. This has been frustrating for CAP-XX and for investors. CAP-XX are now at such a stage in planning and negotiation that it allows CAP-XX to share the news. There hasn’t been much CAP-XX could say over the last 12 months without letting the cat out of the bag.

Everything is now planned by the week/month with Murata’s production lines leaving Japan in the 1st quarter of 2020, this is January, February, March 2020. Murata’s production lines will arrive in Sydney at the beginning to the end of the 1st quarter of 2020, this is April, May, June 2020. CAP-XX expect to be in production with Murata’s production lines and shipping orders in the 3rd quarter of 2020, this is July, August, September 2020.

Murata’s already doing some A$13/14 million of sales from these production lines. CAP-XX expect to pick up these sales lines and add to them. The margin on the manufactured products from these production lines is very attractive, it’s a great margin and will improve CAP-XX’s overall gross margin.

The products made on Murata’s production lines are very complimentary to CAP-XX’s own manufactured products. They address the same customer base and same geographic regions. They fill out CAP-XX’s product range and at the same time CAP-XX get significantly more capacity, way more efficient and at lower cost. This acquisition from Murata provides CAP-XX with very new equipment, improves CAP-XX’s production capacity and helps with CAP-XX’s future development of their 3 volt products and other CAP-XX products coming down the pipeline.

Regarding the present court cases, CAP-XX’s preference is always to find an amicable solution with potential licencees. However, where CAP-XX believe companies are infringing their patents and they can’t reach an amicable solution then CAP-XX find it necessary to take court action. These patents cover the perfomance of the supercapacitors themselves.

Now CAP-XX are able to talk openly about this acquisition from Murata, they can keep investors informed of the progress of bringing the production lines to Sydney, setting up the production lines and restarting production along with news of new customers as well as the customers from Murata.

https://www.canaccordgenuity.com

Link to Canaccord Genuity

Tradingdutchman - this is also from the RNS dated 29 November 2019

Canaccord Genuity Group Inc has subscribed for 15,333,333 Placing Shares, which represents an approximate aggregate amount of £460,000 at the Issue Price.

Bruce Grey and Anthony Kongats, as Directors of CAP-XX are related parties of the Company as defined by the AIM Rules. Canaccord Genuity Group Inc is a substantial shareholder of CAP-XX, currently having an interest in approximately 12.09% of the voting rights of the Company, and is therefore also a related party of the Company as defined by the AIM Rules.

Tradingdutchman - this is from the RNS dated 29 November 2019

Bruce Grey, a Non-Executive Director of the Company, has agreed to subscribe for 833,333 Subscription Shares, which represents an approximate amount of £25,000 at the Issue Price. Anthony Kongats, Chief Executive of the Company, has agreed to subscribe for 333,333 Subscription Shares, which represents an approximate amount of £10,000 at the Issue Price.

CAP-XX Board of Directors

Patrick Elliott, Chairman

Pat Elliott is a company director with 40 years’ experience in investment and corporate management. His early career was at Consolidated Gold Fields Australia, and covered investment analysis, management and marketing. He later worked in investment banking and became Head of Corporate Finance for Morgan Grenfell Australia and Managing Director of Natcorp Investments. Patrick has a BCom and MBA, and is a CPA. He is on the Remuneration and Audit Committees.

Anthony Kongats, Chief Executive Officer

Anthony founded CAP-XX in 1997. Prior to this, he was managing director of a passive electronic components manufacturer, a management consultant with McKinsey & Company, and held a number of engineering positions in Australia and Europe. Anthony has a BEng (Hons) from the University of New South Wales, a BSc from the University of Sydney, and an MBA from the Australian Graduate School of Management in Sydney.

Bruce Grey, Non-Executive Director

Bruce is a company director with a strong track record of management in engineering and manufacturing companies, and of commercialisation of automotive technology. This was gained during 13 years with Bishop Technology Group, a privately held Australian automotive technology development company, during which licensing agreements were secured with Robert Bosch, Mercedes Benz, Ford, and two Chinese component suppliers. He also secured an equity investment in Bishop from Mercedes-Benz, which was subsequently transferred to ThyssenKrupp Presta Steertec. Bishop’s technology is today present in over 20% of vehicles manufactured worldwide. In 2012 he was appointed to the Australian Federal Government’s Clean Technology Investment Committee.

https://www.cap-xx.com/investors/about-us/key-personnel/

The Board of Directors of CAP-XX is on this link and yes there are only 3 of them, Patrick Elliott, Anthony Kongats and Bruce Grey.

Looks like it Tradingdutch.

From memory, there are only 3 Directors on the Board of CAP-XX. Anthony Kongats is the only permanent director. Anthony Kongats is also the founder, Chief Executive of CAP-XX and receives a salary which isn't huge.

The other two Patrick Elliott and Bruce Gray are non-executive Directors and receive their salaries in CAP-XX shares. Patrick Elliott is also the non-executive Chairman.

Anthony Kongats is investing £10,000 and Bruce Gray £25,000 in the 3p subscription offer.

man2061 This is normal practice in court cases to keep trying to get the motion dismissed.

Tradingdutchman - Antony Kongats and Bruce Gray are buying shares in this 3p subscription offer from their own private money.

All new shares will be credited to accounts on 7 January 2020.

There has to be a meeting for shareholders to pass the resolution to buy the production lines from Murata and this will be held on 30 December 2019.

All the information above is already in the public domain hence why CAP-XX wouldn’t need to resepond to your email.

I use Redmayne Bentley for all my investments.

https://www.redmayne.co.uk

I've bought more CAP-XX shares in this subscription offer of 3p because in my humble opinion it's a worthwhile investment.

I had to email my broker before Wednesday 18 December 2019 to do this.

Placing of 87,000,001 Placing Shares at 3 pence per share

Subscription of 4,666,666 Subscription Shares at 3 pence per share

Offer to Qualifying Participants of up to 25,000,000 Offer Shares at 3 pence per share

Proposed granting of authority to allot shares

and

Notice of General Meeting

CAP-XX Limited, a world leader in the design and manufacture of thin, prismatic supercapacitors and energy management systems, is pleased to announce that it has conditionally agreed to acquire the equipment currently used in the supercapacitor production lines (the "Assets") of Murata Manufacturing Co., Ltd of Japan ("Murata") (the "Acquisition"). The Board is of the view that the Acquisition represents a compelling opportunity to acquire high-quality, modern supercapacitor manufacturing assets, which have become available to CAP-XX at a very low cost.

The Company also announces that it has conditionally raised approximately £2.61 million (before expenses) by way of a placing (the "Placing") of 87,000,001 new Ordinary Shares in the Company ("Placing Shares") at a price of 3 pence per share (the "Issue Price"). The Company has also conditionally raised approximately £0.14 million (before expenses) by way of a subscription (the "Subscription") of 4,666,666 new Ordinary Shares in the Company ("Subscription Shares") at the Issue Price.

In addition, in order to provide the Company with additional working capital and to provide Shareholders who have not taken part in the Placing with an opportunity to participate in the proposed issue of New Ordinary Shares, the Company is providing all Qualifying Participants with the opportunity to subscribe at the Issue Price for an aggregate of up to 25,000,000 Offer Shares, to raise up to £0.75 million (before expenses).

It is intended that the net proceeds of the Placing and the Subscription will be used to fund the Acquisition and the process of integrating the Assets into CAP-XX's business activities following completion of the Acquisition, including decommissioning, shipping, the fit out of a new factory, recommissioning, engagement with customers and strategic alterations to CAP-XX's product ranges (the "Project"). The proceeds of the Offer to Qualifying Participants will be applied towards additional working capital for CAP-XX.

The Acquisition, the Placing, the Subscription and the Offer to Qualifying Participants are conditional, inter alia, on the approval of Shareholders of a resolution to grant the necessary authority to the Directors in accordance with the Company's dilution policy in order to allow the Directors to allot the Placing Shares, the Subscription Shares and the Offer Shares.

Highlights

· Through the Acquisition, CAP-XX will become the owner and operator of Murata's supercapacitor production lines

· Murata is currently a licensee of CAP-XX's technology and patents, and the Acquisition has been made possible by a change in Murata's group strategy

· Murata's production lines are newer than CAP-XX's own production line and have a production capacity that is approximately three times greater

· The Board believes that the Acquisition should enable CAP-XX to achieve significant levels of profitability once the production lines have been transferred

o Anticipated that production of supercapacitors using the Assets will recommence in the third calendar quarter of 2020

· Over 12 months of planning in respect of the Acquisition has already been completed

o This has involved a strong focus on acquisition integration and production line recommissioning, supported by Murata

o CAP-XX and Murata both have experience in the relocation of production lines

http://www.allenbycapital.com/research/research-cpx_31_3866217389.pdf

Well Worth Reading Again

Tradingdutchman the share price will stay around 3p until the end of the fund raising. In my opinion 3p is a great price to buy.