Foresight Autonomous Holdings Ltd. (NASDAQ: FRSX) announced it has entered into a definitive agreement with VisionWave Holdings, Inc. (NASDAQ: VWAV) for a strategic equity investment of up to $17.5 million. The investment values Foresight at approximately $34 million post-investment and will be paid in VisionWave common stock.

Under the transaction terms, VisionWave will acquire a controlling 52% stake in Foresight through a two-stage process. In the first stage, VisionWave will receive 46% of Foresight's outstanding ordinary shares in exchange for approximately $15.5 million worth of VisionWave stock. Upon achieving a commercial milestone involving a binding pilot project, VisionWave will receive an additional 6% stake for approximately $2 million in additional shares.

The collaboration aims to integrate Foresight's visible light, infrared, and neuromorphic sensor technologies with VisionWave's artificial intelligence and radio frequency-based perception systems. The combined technologies are intended for defense and security applications including counter-unmanned aircraft systems, tactical unmanned systems, border protection, and critical infrastructure monitoring.

VisionWave will have the right to appoint two directors to Foresight's board upon the first stage closing and one additional director upon the second stage closing. Both companies will continue operating as independent, publicly traded entities.

"This strategic investment from VisionWave represents an important opportunity to combine our proven perception expertise with advanced AI technologies," stated Haim Siboni, Chief Executive Officer of Foresight.

The transaction requires regulatory, stock exchange and shareholder approvals, along with other customary closing conditions. Foresight develops 3D perception systems for automotive, defense, and other markets, while VisionWave focuses on AI-driven sensing technologies for defense and security applications.