Rail Vision Enters the Quantum Transportation Market with Strategic Acquisition Agreement

Core Viewpoint - Rail Vision Ltd. is acquiring 51% ownership of Quantum Transportation Ltd., a quantum computing and AI company, to enhance railway safety and data-related technologies, with the acquisition expected to close between late December 2025 and early January 2026 [1][3]. Group 1: Acquisition Details - The acquisition involves Rail Vision obtaining 51% ownership of Quantum Transportation, which specializes in error correction technologies in quantum computing [1][2]. - Rail Vision will issue ordinary shares representing approximately 4.99% of its issued and outstanding share capital to certain Quantum Transportation shareholders in exchange for their full holdings [4]. - A convertible loan of up to $700,000 will be extended to Quantum Transportation at an 8% annual interest rate to support its operations and development for the next 18 months [5]. Group 2: Technology and Innovation - Quantum Transportation holds an exclusive sub-license for a pending patent application in quantum error correction, which addresses challenges in noisy intermediate-scale quantum devices [2][6]. - The technology developed by Quantum Transportation is expected to enable efficient, real-time decoding of surface code errors, significantly reducing computational overhead compared to traditional methods [2][6]. - Rail Vision aims to leverage this technology for applications in anomaly detection, predictive maintenance, and autonomous rail operations, tapping into the growing quantum computing market [7]. Group 3: Strategic Goals - The strategic combination of Rail Vision's railway safety technologies with Quantum Transportation's quantum-AI based IP is anticipated to create technological synergies and enhance product lines [3]. - This acquisition is expected to accelerate innovation and support long-term value creation for stakeholders [3]. - Rail Vision believes that its technology can significantly improve railway safety and efficiency, potentially advancing the concept of autonomous trains [8].