Rail Vision Secures $6M Credit Facility, Option for Additional $3M

TL;DR

**Rail Vision just locked in $6M in new debt, with another $3M on tap, to boost its cash.**

AI Summary

On January 9, 2024, Rail Vision Ltd. secured a new credit facility for $6 million, with an initial $1.5 million drawn immediately. This facility, provided by a global investment firm, also includes an option for an additional $3 million, bringing the total potential funding to $9 million. The initial $6 million loan carries an 8% annual interest rate over 10 months, while the optional $3 million will accrue interest at 12%. This matters to investors because it provides Rail Vision with crucial capital for operations and growth, potentially reducing immediate liquidity concerns but also introducing new debt obligations and interest expenses.

Why It Matters

This new credit facility provides Rail Vision Ltd. with significant capital, which can fund ongoing operations and strategic initiatives, potentially stabilizing the company's financial position and supporting future growth.

Risk Assessment

Risk Level: medium — While providing liquidity, the new debt facility introduces interest expenses (8% and 12%) and repayment obligations, which could strain future cash flow if not managed effectively.

Analyst Insight

An investor should monitor Rail Vision Ltd.'s upcoming earnings reports to assess how the new capital is being deployed and its impact on operational efficiency and profitability, especially considering the interest expenses.

Key Numbers

• $6 million — Initial Credit Facility (The primary amount of funding secured by Rail Vision Ltd.)
• $3 million — Additional Loans (The maximum extra funding Rail Vision Ltd. can draw, subject to conditions.)
• $1.5 million — First Drawdown (The immediate cash injection Rail Vision Ltd. received upon signing the agreement on January 9, 2024.)
• 8% — Credit Facility Interest Rate (The annual interest rate Rail Vision Ltd. will pay on the initial $6 million loan.)
• 12% — Additional Loans Interest Rate (The annual interest rate Rail Vision Ltd. will pay on the optional $3 million loans.)

Key Players & Entities

• Rail Vision Ltd. (company) — the registrant securing the credit facility
• global investment firm (company) — the Lender providing the credit facility
• $6 million (dollar_amount) — initial amount of the Credit Facility
• $3 million (dollar_amount) — additional amount available under the Additional Loans
• $1.5 million (dollar_amount) — first payment drawn upon execution of the Facility Agreement
• January 9, 2024 (date) — date the Facility Agreement was executed
• 8% (number) — annual interest rate for the Credit Facility
• 12% (number) — annual interest rate for the Additional Loans

Forward-Looking Statements

• Rail Vision Ltd. will utilize the full $9 million available under the credit facility and additional loans. (Rail Vision Ltd.) — medium confidence, target: Within 12 months
• The increased debt burden will negatively impact Rail Vision Ltd.'s net income in the upcoming quarters due to interest expenses. (Rail Vision Ltd.) — high confidence, target: Q1 2024 earnings report

FAQ

Key Financial Figures

• $6 million — “Facility Agreement”) for a $6 million credit facility (the “Credit Faci
• $3 m — ”) and an additional amount up to $3 million, subject to certain conditions (t
• $1.5 million — 8% per annum, and the first payment of $1.5 million was drawn down upon execution of the Fa
• $3 million — onal Loans in an aggregate amount up to $3 million. The Additional Loans include two initi
• $750,000 — clude two initial installments of up to $750,000, and two additional installments of up
• $7.5 million — ate in the event the Company draws down $7.5 million or more pursuant to an alternate credit
• $5 million — tion in an aggregate amount of at least $5 million. Until the Company closes one or more
• $5,000,000 — threshold aggregate amount (initially, $5,000,000 and increasing by an additional $500,00
• $500,000 — 000,000 and increasing by an additional $500,000 for each month during the term) until t
• $7.5 m — senting an aggregate exercise amount of $7.5 million, with a per share exercise price
• $3 — ion, with a per share exercise price of $3.10, subject to certain adjustments and
• $6 Million — lease titled “Rail Vision Secures $6 Million Credit Facility,” a copy of which

Filing Documents

• ea191381-6k_railvision.htm (6-K) — 23KB
• ea191381ex99-1_railvision.htm (EX-99.1) — 98KB
• ea191381ex99-2_railvision.htm (EX-99.2) — 145KB
• ea191381ex99-3_railvision.htm (EX-99.3) — 12KB
• ex99-3_001.jpg (GRAPHIC) — 10KB
• 0001213900-24-002353.txt ( ) — 293KB

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Rail Vision Ltd. Date: January 9, 2024 By: /s/ Ofer Naveh Name: Ofer Naveh Title: Chief Financial Officer 3

View Full Filing

View this 6-K filing on SEC EDGAR