We have an opportunity to buy an approx 25% stake of a US technology company (leader in its field) that converts existing vehicles to solve client specific use cases. The technology (such as AI, Robotics and Autonomous Systems etc.) can be retrofitted to a variety of vehicles to provide the most appropriate solution for the customer.

The company has seen particular interest, amongst others, from the transportation/logistics industry as well as military keen to automate manual tasks due to labor shortages while at the same time reducing the risk of injuries/accidents (for example, the Company has contracts with two of the four US Class 1 Railroads; it has also recently been selected by the DOD for a specific initiative).

The above-mentioned railroads have tested the Company’s technology for 2 years in extreme weather, off-road, dusty and remote environments. They now want to roll out the service and have provided an initial order for 30 sites which the Company estimates to be around 100 vehicles. A $10k/month/vehicle “Mobility (Software) as a Service” charge for a 60-month fixed contract results in $60M of revenue (over 5 years).

The Company estimates that one of their Class 1 railroad customers will need at least 1,000 vehicles.