Rail Vision to Acquire 51% of Quantum Transportation, Combining Quantum-AI and Advanced Vision Technologies

Rail Vision has signed a term sheet to acquire a 51% stake in Quantum Transportation, a quantum computing and AI specialist. The deal aims to combine Rail Vision's advanced vision and safety technologies with Quantum's innovation, creating potential synergies. Rail Vision will issue shares and extend a convertible loan to Quantum to support operations. The transaction is expected to close within 60 days. Rail Vision's stock was up 8.33% in pre-market trade on Nasdaq.

Rail Vision Ltd. (Nasdaq: RVSN), a technology company focused on revolutionizing railway safety and data markets, has signed a non-binding term sheet to acquire a 51% stake in Quantum Transportation Ltd. (the “Acquisition”), a quantum computing and AI company specializing in error correction technologies. The acquisition aims to combine Rail Vision’s advanced vision and safety technologies with Quantum Transportation’s innovative quantum-AI capabilities, creating potential synergies to enhance Rail Vision’s product lines and drive innovation.

Under the terms of the term sheet, Rail Vision will issue ordinary shares representing approximately 4.99% of its share capital to select Quantum Transportation shareholders in exchange for their full holdings. Additionally, Rail Vision will extend a convertible loan of up to $700,000 at an 8% annual interest rate to support Quantum Transportation’s ongoing operations and development. The loan, including principal and interest, shall be repayable within 24 months and may be converted into Quantum Transportation’s most senior class of shares at Rail Vision’s sole discretion.

Quantum Transportation’s patented machine learning-based universal decoder represents a breakthrough in quantum error correction, addressing the inherent noise in qubits that limits scalable quantum computing. This technology enables quantum hardware companies and labs to research and select optimal error correction schemes without in-house teams. By leveraging this technology, Rail Vision aims to unlock new capabilities in anomaly detection, predictive maintenance, and autonomous rail operations, capitalizing on the growing quantum computing market projected to drive exponential advancements in transportation.

The transaction is subject to signing definitive agreements and key milestones and is expected to close within the next 60 days, pending regulatory approvals. Rail Vision’s stock was up 8.33% in pre-market trade on Nasdaq.