CAP-XX Limited, a leading company in supercapacitor and energy management system design and manufacturing, has provided a corporate update regarding its working capital position. Despite efforts to manage cashflows carefully, the company's working capital position has continued to deteriorate due to higher-than-anticipated legal costs associated with patent infringement litigation and lower-than-expected revenue and cash receipts for the first eight weeks of the current calendar year.
The Board has been exploring various options to raise additional financing, including debt, sale/leaseback structures, and equity financing. However, the process of raising additional equity financing is taking longer than anticipated, and the company is now in a highly constrained financial position and requires additional financing by the end of the month. If additional financing is not secured, the Board may have to take steps to preserve and maximize value for its creditors, including placing the company into administration.
The company has stated, "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 maximize 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."
CAP-XX Limited has emphasized that a further update will be provided in due course. For further information, the company has provided contact details for its Chairman, Chief Executive Officer, and its nominated adviser, joint broker, and financial PR.