FRSX~~Foresight and RH Electronics to Join Forces for a Strategic Alliance
3:00 am ET December 17, 2018 (BusinessWire) Print
Foresight Autonomous Holdings Ltd. (Nasdaq and TASE:FRSX), an innovator in automotive vision systems, announced today the signing of a non-binding Development and Investment Agreement with RH Electronics Ltd., a primary contractor in the manufacturing and assembly of electronic systems.
The agreement covers the terms of RH's engagement, directly and/or through its approved contractor, Tonson Labs, for a multi-phase project to develop chip-based FPGA and ASIC solutions for QuadSight(TM), Foresight's four-camera vision system. Initially, RH will lay the infrastructure for an FPGA-board platform. Following completion of phase 1 and successful pass of acceptance tests, RH is planned to proceed towards development and manufacturing of an ASIC chip for the QuadSight(TM) system.
The parties are targeting to enter, within two months, into a binding agreement based on the principles of the initial non-binding agreement, pursuant to which the parties will determine the minimal quantities of QuadSight(TM) production units, and the commercial terms of production. In addition, under such binding agreement RH will receive a "right of first refusal" for the manufacturing of QuadSight(TM) systems and will prepare the infrastructure for such manufacturing facilities.
In addition, RH plans to purchase from Foresight, pursuant to the final binding agreement, approximately 1% of its issued and outstanding share capital, in total consideration of NIS 3,700,000, or NIS 3.00 per ordinary share, representing an 89% premium over the share market price.
"We are very excited about this important strategic alliance with RH that aims to enable us to achieve important future technological milestones," said CEO of Foresight, Haim Siboni. "RH's intended investment at a premium over the share market price marks a significant show of confidence in Foresight's technology. RH's engineering, developing and manufacturing capabilities are of great value to Foresight, making them an ideal partner for our future roadmap."
"We believe in Foresight, its technology and products," said chairman of the board of RH, Yacov Rozenberg. "Having the opportunity to collaborate with Foresight allows us to step into the exciting world of automotive. This agreement is expected to give RH exclusive rights to new production lines that will surely generate growth for company."
