Why CAP-XX surged 123%

CAP-XX makes thin, flat supercapacitors used in mobile phones, digital cameras and tracking devices. Their high power density and energy density makes them incredibly popular with electronics companies looking to reduce the size, weight and cost of devices. Now, the AIM-listed Australian company has launched the world's thinnest supercapacitors.

Just 6mm think, CAP-XX's Thinline range of ultra-thin supercapacitors has been designed to enable new products developed for the so-called Internet of Things (IoT). They're ideal for wearable devices, such as medical, fitness and health monitors, smart watches, and drug delivery systems, too.

These new supercapacitors will also extend battery run-time and cycle life, and enable ultra-quick charging times for portable devices and process equipment.

This all sounds amazing, and explains why CAP-XX shares jumped from 1.5p (£3.6 million) to 3.4p (£8 million) within hours of the announcement. However, they have traded much higher in the past, up near 120p in 2007 and over 30p in 2012. As recently as last September the shares were nudging 4p.

Last year, CAP-XX lost A$2.5 million before tax on revenue of almost A$4 million. Cost savings meant cash burn reduced significantly and cash reserves at the end of June were A$0.9 million. In the half-year to December it lost A$0.9 million and had cash of A$0.5 million, including a tax rebate of A$1.2 million.

However, a month ago, the company raised £1.2 million via a placing of shares at 1p each, and Old Mutual recently took a 7% stake, shortly after Legal & General increased its interest to 15%.

"The proceeds from the completion of the fundraising will give us the resources to work together with our Tier-1 partner for the development of truckStart," said chief executive Anthony Kongats. "Initially targeting the North American heavy truck market, this stage of CAP-XX's expansion alone could potentially represent an addressable market opportunity of $1.8 billion."

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.