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Rail Vision Announces $20 Million Standby Equity Purchase Agreement

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Rail Vision (Nasdaq: RVSN) has entered into a Standby Equity Purchase Agreement (SEPA) with YA II PN, , a fund managed by Yorkville Advisors Global, LP. The agreement allows Rail Vision to sell up to $20 million of its ordinary shares to Yorkville over a three-year period, with no obligation to utilize the full amount.

Key points of the SEPA include:

  • 3% discount on the lowest daily volume weighted average price during a three-day period
  • No minimum commitments or use penalties
  • No restrictions on Rail Vision's operating activities

CEO Shahar Hania stated that this strategic partnership provides flexibility to support ongoing operations and accelerate growth initiatives in the railway safety and efficiency sector through AI-based technology.

Rail Vision (Nasdaq: RVSN) ha stipulato un Accordo di Acquisto di Capitale in Standby (SEPA) con YA II PN, un fondo gestito da Yorkville Advisors Global, LP. L'accordo consente a Rail Vision di vendere fino a $20 milioni delle sue azioni ordinarie a Yorkville nell'arco di un periodo di tre anni, senza l'obbligo di utilizzare l'importo totale.

Punti chiave del SEPA includono:

  • 3% di sconto sul prezzo medio ponderato per volume più basso durante un periodo di tre giorni
  • Nessun impegno minimo o penali per l'uso
  • Nessuna restrizione sulle attività operative di Rail Vision

Il CEO Shahar Hania ha dichiarato che questa partnership strategica offre flessibilità per sostenere le operazioni in corso e accelerare le iniziative di crescita nel settore della sicurezza e dell'efficienza ferroviaria attraverso tecnologia basata sull'IA.

Rail Vision (Nasdaq: RVSN) ha firmado un Acuerdo de Compra de Capital en Reserva (SEPA) con YA II PN, un fondo administrado por Yorkville Advisors Global, LP. El acuerdo permite a Rail Vision vender hasta $20 millones de sus acciones ordinarias a Yorkville durante un período de tres años, sin ninguna obligación de utilizar el monto total.

Puntos clave del SEPA incluyen:

  • 3% de descuento sobre el precio promedio ponderado por volumen más bajo durante un período de tres días
  • Sin compromisos mínimos ni penalizaciones por uso
  • Sin restricciones en las actividades operativas de Rail Vision

El CEO Shahar Hania declaró que esta asociación estratégica proporciona flexibilidad para apoyar las operaciones en curso y acelerar las iniciativas de crecimiento en el sector de la seguridad y eficiencia ferroviaria a través de tecnología basada en IA.

Rail Vision (Nasdaq: RVSN)는 Yorkville Advisors Global, LP가 관리하는 기금인 YA II PN과 대기 자본 구매 계약 (SEPA)를 체결했습니다. 이 계약은 Rail Vision이 $20 백만의 보통주를 Yorkville에 3년 기간 동안 판매할 수 있게 해주며, 전체 금액을 사용해야 할 의무는 없습니다.

SEPA의 주요 사항은 다음과 같습니다:

  • 3일 동안의 가장 낮은 일일 거래량 가중 평균 가격에서 3% 할인
  • 최소 약정이나 사용 벌칙 없음
  • Rail Vision의 운영 활동에 대한 제한 없음

CEO Shahar Hania는 이 전략적 파트너십이 계속되는 운영을 지원하고, AI 기반 기술을 통해 철도 안전 및 효율성 분야의 성장 이니셔티브를 가속화할 수 있는 유연성을 제공한다고 밝혔습니다.

Rail Vision (Nasdaq: RVSN) a conclu un Accord d'Achat de Capitaux en Réserve (SEPA) avec YA II PN, un fonds géré par Yorkville Advisors Global, LP. Cet accord permet à Rail Vision de vendre jusqu'à 20 millions de dollars de ses actions ordinaires à Yorkville sur une période de trois ans, sans obligation d'utiliser le montant total.

Les points clés du SEPA incluent:

  • 3 % de remise sur le prix moyen pondéré par volume le plus bas au cours d'une période de trois jours
  • Pas d'engagement minimum ni de pénalités d'utilisation
  • Pas de restrictions sur les activités opérationnelles de Rail Vision

Le PDG Shahar Hania a déclaré que ce partenariat stratégique offre une flexibilité pour soutenir les opérations en cours et accélérer les initiatives de croissance dans le secteur de la sécurité et de l'efficacité ferroviaire grâce à une technologie basée sur l'IA.

Rail Vision (Nasdaq: RVSN) hat eine Standby Equity Purchase Agreement (SEPA) mit YA II PN, einem von Yorkville Advisors Global, LP verwalteten Fonds, abgeschlossen. Das Abkommen ermöglicht es Rail Vision, bis zu 20 Millionen US-Dollar ihrer Stammaktien über einen dreijährigen Zeitraum an Yorkville zu verkaufen, ohne verpflichtet zu sein, den vollen Betrag zu nutzen.

Wichtige Punkte des SEPA umfassen:

  • 3% Rabatt auf den niedrigsten volumen-weighted Durchschnittspreis an einem Handelstag während eines drei Tage langen Zeitraums
  • Keine Mindestverpflichtungen oder Nutzungspenalen
  • Keine Einschränkungen für die operativen Aktivitäten von Rail Vision

CEO Shahar Hania erklärte, dass diese strategische Partnerschaft Flexibilität bietet, um die laufenden Operationen zu unterstützen und die Wachstumsinitiativen im Bereich der Sicherheit und Effizienz im Schienenverkehr durch KI-basierte Technologien zu beschleunigen.

Positive
  • Access to up to $20 million in additional capital over three years
  • Flexibility to sell shares without obligation, supporting ongoing operations
  • No minimum commitments or use penalties in the agreement
  • No restrictions on the company's operating activities
  • Potential to accelerate growth initiatives and market expansion
Negative
  • 3% discount on share price when selling to Yorkville, potentially diluting existing shareholders
  • Potential dilution of existing shareholders if the company chooses to sell shares

Insights

Rail Vision's $20 million Standby Equity Purchase Agreement (SEPA) with Yorkville is a strategic move that provides financial flexibility without immediate dilution. This type of agreement allows the company to access capital as needed over a three-year period, which can be important for a growing tech company in the railway safety sector. The 3% discount on share price is relatively modest, indicating confidence in Rail Vision's potential. However, investors should note that if utilized, this agreement could lead to future dilution of existing shares. The lack of minimum commitments or use penalties is favorable, giving Rail Vision control over if and when to tap into this funding. This financial cushion could support R&D, market expansion and operational needs, potentially accelerating growth in the competitive AI-based railway safety market. While the SEPA provides a safety net, Rail Vision's ability to execute its business plan and generate revenue will be critical in determining whether this agreement becomes a valuable tool or a last resort.

Securing this strategic financial partnership will support Rail Vision’s expected market expansion,  growth initiatives and financial requirements

Ra’anana, Israel, Oct. 09, 2024 (GLOBE NEWSWIRE) -- Rail Vision Ltd. (Nasdaq: RVSN) (the “Company”), a technology company at the forefront of revolutionizing railway safety and the data-related market, announced that it has entered into a Standby Equity Purchase Agreement (the “SEPA”), with YA II PN, Ltd. (“Yorkville”), a fund managed by Yorkville Advisors Global, LP. Pursuant to the terms of the SEPA, the Company has the right, but not the obligation, to sell to Yorkville up to $20 million (the “Commitment Amount”), of the Company’s ordinary shares at any time during the three-year period following the execution date of the SEPA, subject to the restrictions and satisfaction of the conditions in the SEPA. The purchase price of the ordinary shares sold to Yorkville will be at a 3% discount of the lowest daily volume weighted average price of the Company’s ordinary shares during the three consecutive trading day period commencing on the trading day of the delivery of an advance notice by the Company.

The Company is not obligated to utilize any of the $20 million available under the SEPA and there are no minimum commitments or minimum use penalties. The SEPA does not impose any restrictions on the Company’s operating activities.

“This strategic financial partnership provides Rail Vision with the flexibility to support our ongoing operations and accelerate our growth initiatives,” said Shahar Hania, CEO of Rail Vision. “The SEPA gives us access to significant additional capital, allowing us to focus on executing our vision to revolutionize railway safety and efficiency through our cutting-edge AI-based technology. By leveraging this financial support, we believe that we can enhance our ability to scale, innovate and capture additional market share in the global railway safety industry."

The securities described herein have not been registered under the Securities Act of 1933, as amended, and may not be sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

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 that the Company has the right, but not the obligation, to sell to Yorkville up to $20 million, of the Company’s ordinary shares at any time during the three-year period following the execution date of the SEPA, subject to the restrictions and satisfaction of the conditions in the SEPA, how this strategic financial partnership provides Rail Vision with the flexibility to support its ongoing operations and accelerate its growth initiatives, its vision to revolutionize railway safety and efficiency through our cutting-edge AI-based technology and its belief that the financial support provided by the SEPA can enhance its ability to scale, innovate and capture additional market share in the global railway safety industry. 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 28, 2024. 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.

Investor Relations

Michal Efraty
investors@railvision.io


FAQ

What is the value of Rail Vision's (RVSN) Standby Equity Purchase Agreement?

Rail Vision (RVSN) has entered into a Standby Equity Purchase Agreement (SEPA) worth up to $20 million with YA II PN, , a fund managed by Yorkville Advisors Global, LP.

How long is the term of Rail Vision's (RVSN) Standby Equity Purchase Agreement?

The Standby Equity Purchase Agreement (SEPA) for Rail Vision (RVSN) has a term of three years following the execution date of the agreement.

What is the purchase price of shares under Rail Vision's (RVSN) SEPA?

The purchase price of Rail Vision (RVSN) shares sold to Yorkville under the SEPA will be at a 3% discount of the lowest daily volume weighted average price during a three consecutive trading day period.

Is Rail Vision (RVSN) obligated to use the full $20 million available under the SEPA?

No, Rail Vision (RVSN) is not obligated to utilize any of the $20 million available under the SEPA, and there are no minimum commitments or minimum use penalties.

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