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Investing.com -- Rail Vision Ltd. (NASDAQ:RVSN) stock surged 5.4% in premarket trading Thursday after the railway safety technology company announced plans to acquire a majority stake in quantum computing firm Quantum Transportation Ltd.
The early commercialization stage company has signed a non-binding term sheet to acquire 51% ownership of Quantum Transportation, a company specializing in quantum computing and AI error correction technologies. Rail Vision aims to combine Quantum Transportation’s quantum-AI based IP with its own vision and safety technologies to enhance product lines and drive innovation.
Under the proposed deal, Rail Vision would issue shares representing approximately 4.99% of its share capital to select Quantum Transportation shareholders in exchange for their full holdings. Additionally, Rail Vision would extend a convertible loan of up to $700,000 to Quantum Transportation at an 8% annual interest rate, disbursed in tranches to support operations and development.
Quantum Transportation’s patented machine learning-based universal decoder represents a breakthrough in quantum error correction that addresses noise issues limiting scalable quantum computing. The technology is code-agnostic, noise-aware, and scalable, enabling adaptation across various hardware platforms. Rail Vision plans to utilize this IP for transportation applications, including anomaly detection, predictive maintenance, and autonomous rail operations.
The transaction is subject to signing definitive agreements and meeting key milestones, with an expected closing within the next 60 days pending regulatory approvals.
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