capAI PLC (LSE:CPAI) has signed a Licence and Option Agreement with R42 Group LLC for the Author42 platform.
This move launches capAI’s publishing arm, capMedia, the company highlighted.
It gives capAI exclusive global rights to use and develop the Author42 generative AI platform for 12 months.
Also, the firm has a discretionary option to acquire full ownership of the platform’s intellectual property.
No upfront payment is required, though if the option is exercised, capAI will pay £2 million in shares or a mix of shares and unsecured convertible loan notes.
And, R42 would receive 20% of net proceeds from any future sale or monetisation of the Author42 IP – meanwhile, rights revert to R42 if capAI does not exercise the option within the licence period.