Rail Vision Enters the Quantum Transportation Market with Strategic Acquisition Agreement

Rhea-AI Summary

Rail Vision (Nasdaq: RVSN) signed an agreement to acquire 51% of Quantum Transportation, a quantum computing and AI company holding an exclusive sub-license for a pending quantum error-correction patent from Tel Aviv University. The transaction is expected to close in late December 2025–early January 2026, subject to customary conditions.

Upon closing Rail Vision will issue shares equal to ~4.99% of current outstanding capital to exchanging shareholders and provide a convertible loan of up to $700,000 at 8% interest, repayable within 24 months. The combination targets quantum-AI synergies for railway safety, anomaly detection, and predictive maintenance.

Positive

• Acquisition secures 51% majority control of Quantum Transportation
• Access to exclusive sub-license for pending quantum error-correction patent
• Convertible loan up to $700,000 to fund 18-month development roadmap
• Expected synergies with Rail Vision’s railway-safety and vision technologies

Negative

• Issuance of shares equals approximately 4.99% dilution to current holders
• Convertible loan and conversion rights could cause further future dilution
• Closing is subject to customary conditions, creating transaction uncertainty

News Market Reaction

-1.91%

3 alerts

-1.91% News Effect

+12.8% Peak Tracked

-16.5% Trough Tracked

-$450K Valuation Impact

$23M Market Cap

0.3x Rel. Volume

On the day this news was published, RVSN declined 1.91%, reflecting a mild negative market reaction. Argus tracked a peak move of +12.8% during that session. Argus tracked a trough of -16.5% from its starting point during tracking. Our momentum scanner triggered 3 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $450K from the company's valuation, bringing the market cap to $23M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Ownership stake: 51% Share issuance: 4.99% of share capital Convertible loan size: $700,000 +5 more

8 metrics

Ownership stake 51% Interest in Quantum Transportation to be acquired

Share issuance 4.99% of share capital Ordinary shares issued to Quantum Transportation shareholders at closing

Convertible loan size $700,000 Maximum loan Rail Vision will extend to Quantum Transportation

Loan interest rate 8% annually Interest on convertible loan to Quantum Transportation

Loan term 24 months Repayable in one payment within 24-month term

Operational runway 18 months Convertible loan intended to support Quantum Transportation roadmap

Current price $0.3575 Price before publication, <b>86.86%</b> below 52-week high

52-week range $0.2734–$2.72 Low and high over last 52 weeks

Market Reality Check

Price: $0.3251 Vol: Volume 471,448 is about 0...

low vol

$0.3251 Last Close

Volume Volume 471,448 is about 0.6x the 20-day average of 786,728, showing muted pre-news activity. low

Technical Shares at $0.3575 are trading below the 200-day MA of $0.41 and remain 86.86% under the 52-week high.

Peers on Argus

RVSN was up 0.32% pre-news. Peers were mixed: SWVL +1.78%, RAIL +2.41%, FSTR +0....

RVSN was up 0.32% pre-news. Peers were mixed: SWVL +1.78%, RAIL +2.41%, FSTR +0.64%, GBX +0.57%, while CVV declined 1.8%, suggesting stock-specific drivers.

Historical Context

5 past events · Latest: Dec 01 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 01	Acquisition agreement	Positive	-1.9%	Signed agreement to acquire 51% of Quantum Transportation with loan funding.
Oct 15	Conference appearance	Neutral	-6.5%	Announcement of presentation at LD Micro Main Event XIX investor conference.
Oct 09	AI acquisition term sheet	Positive	-3.5%	Non-binding term sheet to buy 51% of Quantum Transportation with shares and loan.
Sep 30	AI acquisition term sheet	Positive	+9.3%	Term sheet for 51% stake in quantum AI firm via shares and $700k loan.
Sep 03	Nasdaq compliance	Negative	+12.6%	180-day Nasdaq extension to regain $1.00 minimum bid requirement.

Pattern Detected

Recent news shows frequent divergence: several positive strategic announcements and a Nasdaq extension drew opposite or mixed price reactions, with only one acquisition-related update aligning positively.

Recent Company History

Over the last six months, Rail Vision has focused on strategic expansion and capital markets compliance. Multiple items centered on acquiring a 51% stake in Quantum Transportation, including term sheets and today’s definitive agreement, featuring a share issuance of 4.99% and a $700,000 convertible loan. The stock reaction to these AI/acquisition updates has been mixed, with one strong gain of 9.34% but other related releases posting declines. Separately, a Nasdaq minimum bid price extension to March 2, 2026 prompted a double‑digit gain.

Market Pulse Summary

This announcement details a definitive agreement for Rail Vision to acquire 51% of Quantum Transport...

Analysis

This announcement details a definitive agreement for Rail Vision to acquire 51% of Quantum Transportation, combining quantum error-correction IP with existing railway-safety technologies. The deal involves issuing shares equal to 4.99% of current capital and a $700,000 convertible loan at 8% interest over 24 months. Historically, similar AI and acquisition updates have produced mixed price reactions, so investors may watch execution milestones, integration progress, and Nasdaq listing compliance as key markers.

Key Terms

quantum error correction, surface code, fault-tolerant quantum computing, convertible loan, +2 more

6 terms

quantum error correction technical

"innovative pending patent application in quantum error correction owned by Ramot"

Quantum error correction is a set of methods for detecting and fixing mistakes in quantum computers by encoding fragile quantum information across multiple physical parts, much like using multiple copies or checksums to protect a sensitive digital file. For investors, it matters because reliable error correction is a key technical milestone that determines whether quantum machines can scale from experimental devices to practical tools that could disrupt computing, encryption, drug discovery and other industries.

surface code technical

"real-time decoding of surface code errors, significantly reducing computational overhead"

A surface code is a method used in quantum computing to detect and correct errors by arranging qubits in a grid where patterns of measurements reveal faults, much like a quilt pattern helping you spot and mend a torn patch. It matters to investors because robust error correction is a key hurdle to building practical, scalable quantum computers; progress or setbacks in surface-code implementations can materially affect a company’s technology roadmap, costs, timelines and competitive position.

fault-tolerant quantum computing technical

"supporting scalable fault-tolerant quantum computing"

Fault-tolerant quantum computing is the ability of a quantum computer to keep producing correct results even when its basic parts make mistakes, by detecting and fixing errors and using redundancy so the machine continues to work reliably. For investors, it matters because fault tolerance is the key to scaling quantum machines from experimental demos into practical, revenue-generating systems—think of it like having backups and automatic repairs that make a prototype road-ready and lower the technology’s commercial and technical risk.

convertible loan financial

"Rail Vision will extend a convertible loan of up to $700,000 to Quantum Transportation"

A convertible loan is money lent to a company that can later be changed into shares instead of being repaid in cash. For investors it combines the safety of a loan—priority for repayment if things go wrong—with the potential upside of owning part of the company if its value rises; think of it as lending money that can be swapped for a slice of the company pie under pre-agreed terms. It matters because it affects returns and how much ownership existing shareholders will have.

qubits technical

"addressing the inherent noise in qubits that limit scalable quantum computing"

Qubits are the basic units of information in quantum computing, similar to how traditional computers use bits. Unlike regular bits that are either 0 or 1, qubits can represent both at the same time, allowing quantum computers to process complex problems much faster. This potential for unprecedented speed and power could transform industries, making qubits a key focus for investors interested in cutting-edge technology.

machine learning-based universal decoder technical

"sub-licensed, machine learning-based universal decoder pending patent represents a potential"

A machine learning-based universal decoder is a software system that learns to translate many kinds of raw data—such as text, audio, images or sensor signals—into a single, usable output or label. Think of it as a multilingual translator that also converts pictures and sounds into the same clear message. For investors, it matters because this capability can make products more flexible and scalable, create competitive advantage, and concentrate risks around data quality, compute costs and regulatory/privacy oversight.

AI-generated analysis. Not financial advice.

Ra’anana, Israel, Dec. 01, 2025 (GLOBE NEWSWIRE) -- Rail Vision Ltd. (Nasdaq: RVSN) (“Rail Vision” or the “Company”), an early commercialization stage technology company seeking to revolutionize railway safety and the data-related market, today announced the signing of an agreement for a strategic transaction to acquire 51% ownership of Quantum Transportation Ltd. (the “Acquisition” and “Quantum Transportation”), a cutting-edge quantum computing and AI company specializing in error correction technologies. The closing of the Acquisition is expected to close in late December 2025 to early January 2026, subject to the satisfaction of customary closing conditions.

Quantum Transportation holds an exclusive sub license, for rail technologies and platforms, for an innovative pending patent application in quantum error correction owned by Ramot, the technology transfer company of the Tel Aviv University. This IP and additional know-how addresses critical challenges in noisy intermediate-scale quantum devices by enabling efficient, real-time decoding of surface code errors, significantly reducing computational overhead compared to traditional methods and supporting scalable fault-tolerant quantum computing.

Through this transaction, Rail Vision and Quantum Transportation aim to combine quantum-AI based intellectual property (IP) protection and innovation with Rail Vision’s advanced vision and railway-safety technologies.

This strategic combination is expected to create meaningful technological synergies, enhance Rail Vision’s current and future product lines, accelerate innovation, and support long-term value creation for stakeholders.

Upon the closing of the Acquisition, Rail Vision will issue ordinary shares representing approximately 4.99% of its issued and outstanding share capital, immediately prior to such issuance, to certain Quantum Transportation shareholders (the “Exchanging Shareholders”) in exchange for their full holdings in Quantum Transportation, representing 51% ownership of Quantum Transportation Ltd. and securing majority control post-closing.

Additionally, upon the closing of the Acquisition, Rail Vision will extend a convertible loan of up to $700,000 to Quantum Transportation at an 8% annual interest rate, disbursed in tranches to support Quantum Transportation's ongoing operations and development roadmap for the next 18 months. The loan, including principal and interest, shall be repayable in one payment within a 24-month term. Rail Vision will have the sole discretion to convert the outstanding amount into Quantum Transportation’s most senior class of shares, at a conversion price equal to the lower of (i) the valuation implied by the share exchange in the current acquisition or (ii) the price per share in a future equity investment in Quantum Transportation, subject to certain conditions.

Quantum Transportation’s sub-licensed, machine learning-based universal decoder pending patent represents a potential breakthrough in quantum error correction, addressing the inherent noise in qubits that limit scalable quantum computing. This technology, developed by leading computer science experts and protected as patented IP, is code-agnostic, noise-aware, and scalable. This enables it to adapt seamlessly across various hardware platforms and code sizes and empowers quantum hardware companies and labs, particularly small- to medium-sized entities, to research and select optimal error correction schemes without in-house teams.

By utilizing this IP for transportation applications, including railway, Rail Vision aims to unlock new capabilities in anomaly detection, predictive maintenance, and autonomous rail operations, capitalizing on the growing quantum computing market projected to drive exponential advancements in transportation.

About Rail Vision Ltd.

Rail Vision is a development stage technology company that is seeking to revolutionize railway safety and the data-related market. The company has developed cutting edge, artificial intelligence based, industry-leading technology specifically designed for railways. The company has developed its railway detection and systems to save lives, increase efficiency, and dramatically reduce expenses for the railway operators. Rail Vision believes that its technology will significantly increase railway safety around the world, while creating significant benefits and adding value to everyone who relies on the train ecosystem: from passengers using trains for transportation to companies that use railways to deliver goods and services. In addition, the company believes that its technology has the potential to advance the revolutionary concept of autonomous trains into a practical reality. For more information, please visit https://www.railvision.io/

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act and other securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. Such expectations, beliefs and projections are expressed in good faith. For example, Rail Vision is using forward-looking statements when it discusses the timing and completion of the Acquisition, the satisfaction of closing conditions related to the Acquisition, how Rail Vision and Quantum Transportation aim to combine quantum-AI based intellectual property protection and innovation with Rail Vision’s advanced vision and railway-safety technologies, how the strategic combination is expected to create meaningful technological synergies, enhance Rail Vision’s current and future product lines, accelerate innovation, and support long-term value creation for stakeholders and how Rail Vision aims to unlock new capabilities in anomaly detection, predictive maintenance, and autonomous rail operations, capitalizing on the growing quantum computing market projected to drive exponential advancements in transportation. However, there can be no assurance that management’s expectations, beliefs and projections will be achieved, and actual results may differ materially from what is expressed in or indicated by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements. For a more detailed description of the risks and uncertainties affecting the Company, reference is made to the Company’s reports filed from time to time with the Securities and Exchange Commission (“SEC”), including, but not limited to, the risks detailed in the Company’s annual report on Form 20-F filed with the SEC on March 31, 2025. Forward-looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, subsequent events or circumstances, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. Rail Vision is not responsible for the contents of third-party websites.

Contacts
David BenDavid
Chief Executive Officer
Rail Vision Ltd.
15 Ha'Tidhar St
Ra'anana, 4366517 Israel
Telephone: +972- 9-957-7706

Investor Relations:
Michal Efraty
investors@railvision.io

FAQ

What is Rail Vision acquiring in the RVSN deal announced December 1, 2025?

Rail Vision agreed to acquire 51% of Quantum Transportation, including an exclusive sub-license for a pending quantum error-correction patent.

When is the RVSN–Quantum Transportation acquisition expected to close?

The closing is expected in late December 2025 to early January 2026, subject to customary closing conditions.

How will Rail Vision compensate Quantum Transportation shareholders in the RVSN transaction?

Rail Vision will issue ordinary shares equal to approximately 4.99% of its issued and outstanding capital prior to issuance.

What financing is Rail Vision providing to Quantum Transportation after closing of the RVSN deal?

Rail Vision will extend a convertible loan of up to $700,000 at 8% annual interest, repayable in one payment within 24 months.

How could the Quantum Transportation acquisition affect RVSN’s product capabilities?

The acquisition aims to integrate quantum-AI error-correction IP with RVSN’s vision tech to enhance anomaly detection, predictive maintenance, and autonomous rail operations.