I'm totally blind on what the point of this ability is. My first (and only) thought on it is that it takes a dead cap ships level (say 7) and puts that level onto a cap ship of a lower level (say 5), raising it to 7. But, if I put it on auto-cast (I did that to see if I could notice anything), it does the ability even when not in battle.
So... Yeah, an explination would be nice.