Rail Vision Ltd. (NASDAQ:RVSN) surged 5.4% in premarket trading Thursday after revealing plans to acquire a controlling stake in Quantum Transportation Ltd., marking a major strategic expansion into quantum computing.
The railway safety technology company has signed a non-binding term sheet to purchase 51% of Quantum Transportation, which develops advanced quantum computing and AI error correction solutions. Rail Vision intends to merge Quantum Transportation’s quantum-AI IP with its own safety and vision systems to strengthen its product offerings and accelerate innovation.
As part of the proposed deal, Rail Vision would issue shares equivalent to roughly 4.99% of its share capital to certain Quantum Transportation shareholders in exchange for their stakes. The company will also provide a convertible loan of up to $700,000 at an annual interest rate of 8%, distributed in stages to fund operations and R&D.
Quantum Transportation’s patented machine learning-based universal decoder is a breakthrough in quantum error correction, tackling the noise challenges that limit scalable quantum computing. Its code-agnostic, noise-aware, and scalable design allows it to work across different hardware platforms. Rail Vision plans to leverage this IP to advance transportation technologies like predictive maintenance, anomaly detection, and autonomous rail operations.
The transaction remains subject to final agreements, milestone achievements, and regulatory approvals, with closing expected within the next 60 days.
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