Rail Vision Signs Term Sheet to Acquire 51% Stake in Quantum Computing AI Company for the Transportation Industry

Core Viewpoint - Rail Vision Ltd. has announced a strategic transaction to acquire 51% of Quantum Transportation Ltd., aiming to enhance railway safety and innovation through the integration of quantum computing and AI technologies [1][2][5]. Company Overview - Rail Vision is a development stage technology company focused on revolutionizing railway safety and the data-related market with AI-based technologies designed to improve efficiency and reduce costs for railway operators [6]. Acquisition Details - The acquisition involves Rail Vision issuing ordinary shares representing approximately 4.99% of its share capital to select Quantum Transportation shareholders in exchange for their full holdings, securing majority control post-closing [3]. - Rail Vision will also extend a convertible loan of up to $700,000 to Quantum Transportation at an 8% annual interest rate, to support ongoing operations and development [3]. Technology Synergies - Quantum Transportation's patented machine learning-based universal decoder addresses noise in qubits, enabling scalable quantum computing and enhancing error correction capabilities [4]. - The integration of this technology with Rail Vision's existing systems aims to unlock new capabilities in anomaly detection, predictive maintenance, and autonomous rail operations, capitalizing on the growing quantum computing market [4][5]. Strategic Importance - The CEO of Rail Vision emphasized that this acquisition would blend rail-focused AI expertise with quantum error correction, aiming to redefine safety and efficiency in the global railway sector [5]. - The transaction is expected to close within the next 60 days, subject to regulatory approvals and other conditions [5].