Third Eye Systems Shares Surge 14% Following Major US Defense Partnership
Third Eye Systems signed strategic MOUs with US defense-tech firm Aelyon for advanced autonomous systems, sending its shares up 14% on the Tel Aviv Stock Exchange.
The defense and technology company Third Eye Systems, which specializes in the development of AI-integrated electro-optical systems, reported a dramatic milestone in its international operations this morning. The company signed two strategic memoranda of understanding with the American defense-tech firm Aelyon to develop and commercialize advanced autonomous systems. The encouraging report translated into a sharp 14% surge in the company's stock on the Tel Aviv Stock Exchange.
Establishment of Subsidiary and Patent Filings
As part of the collaboration, a dedicated subsidiary named "Kach HaYarok Capabilities Ltd." was established to serve as the development arm of the project. The new company has already applied for the registration of 19 patents in Israel covering architecture, cyber, and control over autonomous systems, receiving an exclusive license from Third Eye for its intellectual property, hardware, and sensor technologies.
Phased Investment and Acquisition Options
Under the outlined framework, American-based Aelyon will raise capital and subsequently issue phased development orders across three distinct stages. In the first stage, $5 million will be transferred within 180 days to develop prototypes; in the second stage, an additional order of $15 million will be placed; and in the third stage, another $20 million will be allocated for mass production and commercial deployment.
"We are pleased to announce a strategic collaboration that leverages the technological capabilities developed at Third Eye into significant commercial orders," said Lior Segal, CEO of Third Eye Systems.
Furthermore, the agreement includes dramatic acquisition options: following the second stage, the American company can choose between maintaining the status quo, converting into a 50-50 joint venture, or fully acquiring the subsidiary for an agreed valuation of at least $20 million. Additionally, the subsidiary will be entitled to tiered royalties from complete system sales, alongside annual minimum royalties of $2 million starting from the fifth year.
