Foresight Autonomous Holdings Ltd. (NASDAQ and TASE: FRSX) announced it has entered a non-binding term sheet with VisionWave Holdings, Inc. (NASDAQ: VWAV) for a strategic equity investment of up to $17.5 million.

Under the proposed terms, VisionWave would invest between $15.45 million and $17.5 million through VisionWave common stock based on a five-day average closing price prior to closing. In exchange, VisionWave would receive Foresight ordinary shares representing 45% to 51% of the company's outstanding share capital.

The transaction values Foresight at approximately three times its current market value, reaching a post-investment valuation of about $35 million, according to the company's statement.

The agreement includes Foresight's commitment to focus more heavily on defense, military, and homeland security markets. The companies plan to leverage synergies between Foresight's camera-based perception systems and VisionWave's radio frequency and defense technologies.

"We believe that Foresight's unique stereo vision solutions, and especially its proprietary thermal camera expertise, which is complementary to VisionWave's existing sensing technologies, is expected to have significant impact on VisionWave ability to deliver large scale military and defense projects to our customers," said Douglas Davis, VisionWave's executive chairman and chief executive officer.

The transaction requires completion of due diligence, negotiation of definitive agreements, regulatory approvals, stock exchange approvals, shareholder approvals, and other standard closing conditions.

Foresight develops 3D perception systems for automotive, defense, agriculture, and unmanned aerial vehicle applications. VisionWave is a defense and advanced sensing technology company that develops AI-driven, RF-based sensing technologies.