Rail Vision: Quantum AI Powers Next-Gen Rail Safety Breakthroughs

Rhea-AI Summary

Rail Vision (Nasdaq: RVSN) signed an agreement to acquire 51% of Quantum Transportation, a quantum computing and AI company, via issuance of shares and a convertible loan. The closing is expected late December 2025 to early January 2026, subject to customary conditions.

Rail Vision will issue ordinary shares equal to approximately 4.99% of its outstanding capital immediately prior to issuance to certain Quantum shareholders and provide a convertible loan of up to $700,000 at 8% annual interest, repayable in one payment within a 24-month term (convertible at Rail Vision’s discretion). Quantum holds an exclusive sublicense for a pending patent in quantum error correction intended for rail technologies.

Positive

• 51% acquisition secures majority control of Quantum Transportation
• Issued shares represent approximately 4.99% of pre-issuance share capital
• Convertible loan up to $700,000 funds 18‑month development roadmap
• Exclusive sublicense to pending quantum error-correction patent for rail use

Negative

• Share issuance causes dilution of roughly 4.99%
• Convertible loan repayable in one payment within 24 months
• Closing timing uncertain: subject to customary conditions (late Dec 2025–Jan 2026)

Key Figures

Stake acquired 51% ownership Majority control of Quantum Transportation upon closing

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

Convertible loan size $700,000 Maximum principal extended to Quantum Transportation

Interest rate 8% annual interest Rate on convertible loan to Quantum Transportation

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

Operating runway support 18 months Loan intended to support Quantum Transportation’s roadmap

Market Reality Check

$0.3575 Last Close

Volume Volume 471,448 is below the 20-day average of 775,533 (relative volume 0.61). low

Technical Price at 0.3575 is trading below the 200-day MA at 0.41 and far under the 2.72 52-week high.

Peers on Argus 2 Down

Two momentum-screened peers (STAI and KITT) also moved down (-14.75%, -4.64%) without news, while RVSN declined 6.22%, pointing to broader pressure alongside today’s company-specific AI acquisition update.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 01	Acquisition agreement	Positive	-1.9%	Signed agreement to acquire 51% of Quantum Transportation with share issuance and loan.
Oct 15	Conference appearance	Neutral	-6.5%	Announcement of LD Micro Main Event XIX presentation and investor meetings.
Oct 09	AI acquisition term sheet	Positive	-3.5%	Non-binding term sheet to buy 51% of Quantum Transportation with share and loan structure.
Sep 30	AI acquisition term sheet	Positive	+9.3%	Term sheet for 51% stake in Quantum Transportation’s quantum error-correction technology.
Sep 03	Nasdaq extension	Positive	+12.6%	Nasdaq granted 180-day extension to regain $1.00 minimum bid compliance.

Pattern Detected

Recent positive corporate updates, including earlier Quantum Transportation term sheets and this acquisition theme, often saw mixed-to-negative next-day reactions, while compliance and one AI deal headline drew stronger upside.

Recent Company History

Over the last six months, Rail Vision has repeatedly highlighted its planned acquisition of 51% of Quantum Transportation, outlining share issuance of about 4.99% and a $700,000 convertible loan at 8% interest. Earlier term sheet announcements on Sep 30 and Oct 9 framed quantum-AI technology as central to future anomaly detection and autonomous capabilities. A Nasdaq 180-day bid-price extension on Sep 3 and an LD Micro conference appearance added visibility. Today’s announcement formalizes that strategic direction with a definitive acquisition agreement and closing timetable.

Market Pulse Summary

This announcement formalizes Rail Vision’s move into quantum-AI by acquiring 51% of Quantum Transportation, issuing 4.99% new shares, and providing a $700,000 convertible loan at 8% over 24 months. It extends a strategy first outlined in earlier term sheets and emphasizes applications in anomaly detection, predictive maintenance, and autonomous operations. Investors may track closing progress, integration milestones, and ongoing efforts to regain Nasdaq’s $1.00 minimum bid compliance.

Key Terms

convertible loan financial

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

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.

quantum error correction technical

"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..."

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.

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.

AI-generated analysis. Not financial advice.

Rail Vision Enters the Quantum Transportation Market with Strategic Acquisition Agreement 

Ra’anana, Israel, Dec. 12, 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, recently 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 sublicense, 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 address 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 transaction did Rail Vision (RVSN) announce on December 12, 2025?

Rail Vision agreed to acquire 51% of Quantum Transportation and to issue shares plus a convertible loan.

When is the Rail Vision (RVSN) acquisition of Quantum Transportation expected to close?

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

How much financing will Rail Vision (RVSN) provide to Quantum Transportation?

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

What equity consideration will Rail Vision (RVSN) issue in the acquisition?

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

What intellectual property does Quantum Transportation bring to Rail Vision (RVSN)?

Quantum Transportation holds an exclusive sublicense for a pending quantum error-correction patent for rail technologies and platforms.

How could the Quantum Transportation acquisition affect Rail Vision (RVSN) products?

Rail Vision expects the quantum-AI IP to enhance anomaly detection, predictive maintenance, and autonomous rail capabilities.