Foresight Autonomous Holdings Ltd., an automotive vision systems maker, announced that it entered into a Memorandum of Understanding (MoU) for manufacturing and engineering consulting services, and an investment agreement with RH Electronics Ltd.
According to the agreement, RH, a primary contractor in the manufacturing and assembly of electronic systems, will invest in Foresight, while Foresight will retain RH’s services for a multi-phase project to develop FPGA and ASIC solutions for Foresight’s QuadSight vision system.
Under the investment agreement, RH will purchase approximately 1% of Foresight’s issued and outstanding share capital for a total consideration of $1,000,000 at a price per ADS of approximately $4.08 (reflecting the price of NIS 3.00 per ordinary share), representing a 133% premium over the share market price on Nasdaq and TASE as of January 28, 2019. The closing of the investment agreement is subject to customary closing conditions and is expected at the beginning of February 2019.
“This is an important transaction for Foresight which will help us to achieve our technological goals and expand our development. We aim to integrate our technology into semi-autonomous and autonomous vehicles, and I believe these agreements are a significant step toward reaching this goal,” said Haim Siboni, CEO of Foresight. “In addition, RH’s investment in Foresight at a high premium over the market price represents a significant display of confidence in the company and its technology, making RH an ideal partner for Foresight’s vision.”
“This collaboration with Foresight is of strategic importance to us,” said Yacov Rozenberg, Chairman of the Board of RH. “We expect that our alliance with Foresight will contribute to the growth of RH, and this investment in the company will be our initial foothold in the automotive industry.”
Under the development services agreement, Foresight has retained RH’s services, mainly through its approved contractor, E.G.M. Ton-Son Ltd., to design, develop and produce prototypes of a chip-based FPGA solution embedding Foresight’s proprietary image processing software for the QuadSight four-camera vision system.
The FPGA-board platform offers substantial performance and cost benefits for long-term mass production in comparison with other off-the-shelf alternatives such as CPU boards. Pursuant to the agreement, RH will provide a proof of concept for an FPGA-board platform by the end of 2019.
Foresight has also retained RH’s manufacturing services under a separate MoU. The MoU covers the relationship between the parties for non-mass production of QuadSight system units if requested by Foresight.