Rail Vision Secures $6 Million Credit Facility
10 January 2024 - 9:10AM
Rail Vision Ltd. (the “Company”) (Nasdaq: RVSN), a technology
company at the forefront of revolutionizing railway safety and the
data-related market, today announced the establishment of a $6
million credit facility (the "Credit Facility") and an additional
amount of up to $3 million, subject to certain conditions (the
“Additional Loans”), with a global investment firm (the “Lender”).
"The successful completion of this financing
marks a significant milestone in our ongoing efforts to enhance our
capital structure," said Shahar Hania, CEO of Rail Vision. "The
facility strengthens our financial position and improves our
ability to accelerate the development and commercialization of
cutting-edge solutions in railway safety. This new credit facility
is not merely a transaction; it's a testament to the confidence
that our investors have in our business strategy and our team's
ability to execute it. We are now better positioned to drive
innovation, expand our market reach, and deliver more value to our
stakeholders."
The Credit Facility, which has a term of 10
months, will accrue interest at a rate of 8% per annum, and the
first payment of $1.5 million was drawn down upon execution of the
agreement. After the Credit Facility is exhausted, the Company may
draw down the Additional Loans in an aggregate amount up to $3
million. The Additional Loans include two initial installments of
up to $750,000, and two additional installments of up to $750,000,
subject to certain conditions. The Additional Loans will accrue
interest at a rate of 12% per annum. As part of the agreement, the
Company granted a warrant to the Lender to purchase ordinary shares
of the Company representing an aggregate exercise amount of $7.5
million with an initial exercise price of $3.10, subject to certain
adjustments, representing a 150% premium of the closing share price
of Rail Vision on January 5, 2024.
As a condition to the Credit Facility, each of
Shmuel Donnerstein, Inbal Kreiss and Keren Aslan have tendered
their resignations from the Company’s board of directors (the
“Board”), and the Board has appointed Amitay Weiss and Hila
Kiron-Revach to the Board, to serve until the Company’s next
general meeting of shareholders.
About Rail Vision Ltd.
Rail Vision is a 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. For example, the Company is
using forward-looking statements when it discusses the Facility
Agreement and future draw downs, its ability to accelerate the
development and commercialization of cutting-edge solutions in
railway safety, being positioned to drive innovation, expand our
market reach, and deliver more value to stakeholders.
Forward-looking statements are not historical facts, and are based
upon management’s current expectations, beliefs and projections,
many of which, by their nature, are inherently uncertain. Such
expectations, beliefs and projections are expressed in good faith.
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 23, 2023. 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
Shahar Hania Chief Executive Officer Rail Vision Ltd. 15
Ha'Tidhar St Ra'anana, 4366517 Israel Telephone: +972-
9-957-7706
Investor Relations:
Dave Gentry, CEO RedChip Companies Inc. 407-491-4498
RVSN@redchip.com
SOURCE: Rail Vision Ltd.
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