Foresight Autonomous Holdings Ltd. (NASDAQ: FRSX) rose Monday, on signing a non-binding development and investment agreement with RH Electronics.
The Israel-based Foresight said in a news release Monday 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™, 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 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™ 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 systems and will prepare the infrastructure for such manufacturing facilities.
According to CEO Haim Siboni, "We are very excited about this important strategic alliance with RH that aims to enable us to achieve important future technological milestones.
“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."
Shares gained 16 cents, or 7.7%, to $2.28
