Datavault AI Inc. secured financing through the issuance of an unsecured convertible promissory note and equity shares to Streeterville Capital, LLC, marking a significant capital raise for the technology firm. The transaction closed on August 18, 2026, under a Securities Purchase Agreement that establishes a framework for future funding through additional notes.

The initial closing involved the sale of an unsecured convertible promissory note with an original principal amount of $25,030,000. This note is convertible into shares of the company’s common stock, which carries a par value of $0.0001 per share. Concurrently, Datavault AI issued 15,000,000 common shares designated as pre-delivery shares to the investor.

Transaction Structure

The aggregate purchase price for the initial tranche was $25,001,500. This total comprises $25,000,000 allocated specifically to the note and $1,500 for the pre-delivery shares. The structure allows Streeterville Capital to acquire equity exposure immediately via the pre-delivery shares while holding a debt instrument convertible into future equity.

Future Funding Rights

Beyond the initial closing, the agreement grants Streeterville Capital the right to purchase up to $25,000,000 in aggregate principal amount of additional unsecured convertible promissory notes. These additional notes may be issued from time to time, accompanied by additional pre-delivery shares as defined in the purchase agreement. This option provides Datavault AI with a potential pipeline for further capital raising while offering the investor continued opportunity to increase its stake.

What the Numbers Show

The valuation mechanics of the deal reveal a distinct separation between the debt instrument's face value and its purchase price. While the note carries an original principal amount of $25,030,000, the investor paid only $25,000,000 for it, indicating a discount or specific pricing adjustment inherent in the convertible structure. Furthermore, the nominal cost of the pre-delivery shares ($1,500 for 15 million shares) suggests these shares serve primarily as a warrant-like component or sweetener rather than a primary revenue generator for this specific tranche, highlighting the hybrid nature of the financing instrument.

Datavault AI Inc. (NASDAQ: DVLT) has signed a definitive agreement to acquire 100% of CyberCatch Holdings Inc. (TSXV: CYBE) (OTCQB: CYBHF) in an all-cash transaction valued at $94,500,000. The acquisition is structured as a court-approved plan of arrangement under the Business Corporations Act (British Columbia) and is expected to integrate CyberCatch’s AI-enabled continuous compliance and cyber risk mitigation platform into Datavault AI’s Quantum Private Network (QPN) GPU ecosystem.

Under the terms of the agreement, Datavault AI will acquire all of CyberCatch’s issued and outstanding common shares, approximately 26.8 million shares, at a price of $3.53 per share. All outstanding dilutive securities of CyberCatch will be exchanged on a cashless-exercise basis. Upon closing, subject to customary board, stock exchange, regulatory, and shareholder approvals, CyberCatch is expected to operate as a subsidiary of Datavault AI from San Diego, California.

Transaction Structure and Leadership

CyberCatch founder, Chairman, and Chief Executive Officer Sai Huda will serve as President of the subsidiary, reporting to Nathaniel T. Bradley, CEO of Datavault AI. The transaction requires requisite CyberCatch shareholder approval, court approval of the plan of arrangement in British Columbia, and any necessary approvals from the TSX Venture Exchange.

Strategic Rationale

The combination targets the global information security market, which Gartner projected would reach $213 billion in 2025. The strategic rationale cites increasing threats from AI-enabled adversaries; according to CrowdStrike’s 2026 Global Threat Report, AI-enabled adversary attacks rose 89% year-over-year in 2025, while the average eCrime breakout time fell to 29 minutes, representing a 65% increase in adversary speed compared to 2024.

Datavault AI also positions the acquisition within the post-quantum security era. Google has set 2029 as its internal deadline to migrate authentication systems to quantum-resistant cryptography. Google Quantum AI research indicates that the qubit threshold required to break widely used elliptic curve cryptography is an order of magnitude lower than previously estimated. CyberCatch is converting its patent-pending multi-authority attribute-based encryption with revocation (MARS-MABE) technology to attain quantum resistance.

Platform Integration

Following closing, CyberCatch’s software-as-a-service platform is expected to operate as the cybersecurity and continuous-compliance layer across Datavault AI’s technology suite. This includes:

• Datavault AI’s DataValue, DataScore, and Information Data Exchange (IDE) running on Available Infrastructure’s SanQtum quantum-resistant, zero-trust edge platform.
• Technologies from the Acoustic Sciences division (WiSA, ADIO, Sumerian).
• Federal and regulated-industry customer workloads requiring continuous compliance attestation against NIST CSF 2.0, NIST 800-171, CMMC 2.0, ISO 27001, SOC 2, HIPAA, and PCI DSS frameworks.

CyberCatch’s platform uses generative AI to confirm legally required controls and calculate a Cyber Hygiene Score, while agentic AI continuously simulates threat-actor tactics to calculate a Cyber Breach Score. The platform tests controls from three dimensions: outside-in, inside-out, and social engineering.

Management Commentary

"Cybersecurity is no longer a separate stack from data and AI," said Nathaniel T. Bradley, CEO of Datavault AI. "It is the precondition for both. CyberCatch’s continuous compliance and cyber risk mitigation platform is expected to add to DataValue, DataScore, and IDE a real-time risk and compliance signal at every node of our edge fleet."

Sai Huda, CEO of CyberCatch, stated: "Datavault AI’s quantum-ready edge platform is exactly the next-generation infrastructure our customers and the marketplace in critical sectors such as defense, healthcare, and financial services need cybersecurity built into."