Rail Vision (NASDAQ: RVSN) signs term sheet to acquire 51% of quantum computing firm

Rail Vision Ltd. (NASDAQ: RVSN) signed a non-binding term sheet to acquire a 51% stake in Quantum Transportation Ltd., a quantum computing and artificial intelligence company focused on error correction technologies for transportation applications.

Under the proposed transaction terms, 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. The company will also provide a convertible loan of up to $700,000 at an 8% annual interest rate, disbursed in tranches over a 24-month term.

Quantum Transportation has developed a patented machine learning-based universal decoder for quantum error correction. The technology addresses noise issues in qubits that limit scalable quantum computing and is designed to work across various hardware platforms and code sizes.

“We believe that this potential strategic acquisition of Quantum Transportation would mark a transformative step for Rail Vision, blending our rail-focused AI expertise with groundbreaking quantum error correction to redefine safety and efficiency in the global railway sector,” said David BenDavid, CEO of Rail Vision.

The transaction requires signing definitive agreements and meeting key milestones. Rail Vision expects the deal to close within 60 days, subject to regulatory approvals and other closing conditions.