Datavault AI and CyberCatch Announce Signing of Binding Letter of Intent for Datavault AI to Acquire CyberCatch to Accelerate AI-Driven, Quantum-Resistant Cyber Risk Mitigation Solutions

Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.PHILADELPHIA & SAN DIEGO — Datavault AI Inc. (“Datavault AI” or the “Company”) (NASDAQ:DVLT), a provider of data monetization, credentialing, digital engagement, and real-world asset (“RWA”) tokenization technologies, and CyberCatch Holdings, Inc. (“CyberCatch”) (TSXV:CYBE) (OTCQB:CYBHF), a cybersecurity company offering a patented, AI-enabled platform for continuous compliance and cyber risk mitigation, today announced they have entered into a binding letter of intent (the “LOI”) under which Datavault AI and CyberCatch will enter into a definitive agreement for Datavault AI to acquire 100% of CyberCatch in an all-stock transaction structured as a court-approved plan of arrangement under the Business Corporations Act (British Columbia).Under the LOI and subject to a definitive agreement, Datavault AI will acquire 100% of CyberCatch’s issued and outstanding common shares (being approximately 26.8 million shares) in exchange for approximately 49.9 million newly issued shares of Datavault AI common stock (the “Datavault AI Shares”) at CAD $5.11 per CyberCatch share, which implies an aggregate value to CyberCatch’s issued and outstanding common shares of CAD $136,843,820. All issued and outstanding CyberCatch securities convertible into or exercisable for CyberCatch common shares will be exchanged for Datavault AI Shares on a cashless exercise basis at a deemed value of USD $2.00 per Datavault AI Share. Upon closing of the transaction, subject to customary board, stock exchange, and any necessary regulatory and shareholder approvals, it is anticipated that Datavault AI stockholders will hold approximately 92.48% and CyberCatch shareholders approximately 7.52% of the equity of Datavault AI, on a non-fully diluted basis. It is anticipated that CyberCatch will operate as a subsidiary of Datavault AI from San Diego, California, and 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 combination is positioned at the intersection of two of cybersecurity’s largest secular markets. According to Gartner, worldwide end-user spending on information security is projected to reach $240 billion in 2026, and Gartner separately projects the AI-amplified security segment will reach $160 billion by 2029, up from $49 billion in 2025. According to IBM’s 2025 Cost of a Data Breach Report, the average U.S. data breach now costs $10.22 million, with a global average of $4.44 million.Regulatory tailwinds are converging with that demand picture. Phase 1 of the U.S. Department of Defense’s Cybersecurity Maturity Model Certification (“CMMC”) program took effect on November 10, 2025, with mandatory third-party C3PAO assessments for Level 2 contracts beginning in November 2026 and full enforcement extending across approximately 220,000 Defense Industrial Base contractors and subcontractors. CyberCatch’s platform is purpose-built to address that mandate in defense, HIPAA in healthcare, NIST 800-171 in manufacturing, NIST CSF 2.0 in financial services, among others.The combination is also positioned for the post-quantum security era. Google has set 2029 as its internal deadline to migrate authentication systems to quantum-resistant cryptography. Separately, Google Quantum AI research demonstrated that the elliptic curve cryptography protecting many digital signatures and authentication systems could be broken by a superconducting quantum computer with fewer than 500,000 physical qubits, an order of magnitude lower than previous estimates. CyberCatch is converting its patent-pending, multi-authority, attribute-based encryption with revocation (“MARS-MABE”) technology to attain quantum-resistance, and combining MARS-MABE with continuous agentic AI penetration testing creates a next-generation cybersecurity stack applicable across healthcare, defense, manufacturing, financial services, and energy.CyberCatch’s patented, AI-enabled continuous cybersecurity compliance and risk mitigation solution:The platform tests cybersecurity controls continuously from three dimensions, outside-in, inside-out, and social engineering, mapping to NIST CSF 2.0, NIST 800-171, CMMC 2.0, ISO 27001, HIPAA, PCI DSS, and other regulated frameworks, replacing once-a-year manual penetration tests with continuous agentic AI penetration testing using specialized skill-set agents.MARS-MABE provides several distinct advantages over current RSA and AES-256 encryption, such as:CyberCatch is led by founder, Chairman, and Chief Executive Officer Sai Huda, a globally recognized cybersecurity expert, author of the bestselling Next Level Cybersecurity, co-author of Canada’s National Cybersecurity Standard, and inventor of USPTO Patent No. 11,297,094, “Automated and Continuous Cybersecurity Assessment with Measurement and Scoring.” He is the former founder and CEO of Compliance Coach, which was acquired by FIS, a FORTUNE 500 company, where he served as GM, Risk, Information Security, and Compliance Solutions.CyberCatch’s board and advisory board include:CyberCatch’s customers span the U.S. defense supply chain, healthcare, financial services, manufacturing, education, and public sectors, and the Company’s capabilities were extended through the February 2026 acquisition of multi-authority attribute-based encryption technology, now branded MARS-MABE, and through 2026 reseller and referral partnerships such as with Speridian Technologies and other multiple reseller partners to U.S. government agencies.Following closing, CyberCatch’s AI-enabled Software-as-a-Service platform is also expected to operate as the cybersecurity and continuous-compliance layer across Datavault AI’s existing technology suite, including:The proposed acquisition is intended to give Datavault AI customers and partners an integrated path from secure compute through AI-driven data analytics, with continuous attestation at every layer.“Cybersecurity is no longer a separate stack from data and AI – it is the precondition for both. CyberCatch’s continuous compliance platform is expected to provide another strategic advantage by adding to DataValue®, DataScore®, and the IDE® a real-time risk and compliance signal at every node of our quantum-secured edge fleet, from federal contractors to enterprise data customers,” said Nathaniel T. Bradley, CEO of Datavault AI.“Datavault AI’s quantum-ready edge platform is exactly the next-generation infrastructure our customers and the marketplace in critical sectors such as in defense, healthcare, and financial services need cybersecurity built into. Joining Datavault AI gives them a clear path to a unified secure-data platform with continuous compliance and cyber risk mitigation built in,” said Sai Huda, founder, Chairman, and Chief Executive Officer of CyberCatch.Under the binding LOI, holders of CyberCatch’s common shares will receive newly issued common shares of Datavault AI as described above, with CyberCatch becoming a wholly-owned subsidiary of Datavault AI. The Datavault AI Shares to be issued are anticipated to be issued in reliance on the exemption from registration under the United States Securities Act of 1933, as amended (the “Securities Act”), provided by Section 3(a)(10), and applicable state securities law exemptions.The transaction is subject to negotiation and execution of a definitive agreement, completion of due diligence, board approvals of both companies, requisite CyberCatch shareholder approval, applicable court approval of the plan of arrangement (British Columbia), and approvals of The Nasdaq Stock Market and the TSX Venture Exchange, as well as other customary closing conditions. The parties have agreed to negotiate a definitive agreement during a 45-day mutual exclusivity period.Datavault AI™ (NASDAQ:DVLT) is a pioneer in AI-driven data experiences, valuation, and monetization of assets in the Web 3.0 environment. The Company’s cloud-based platform delivers comprehensive solutions across its Acoustic Sciences and Data Sciences divisions.Datavault AI’s Acoustic Sciences division features WiSA®, ADIO®, and Sumerian® patented technologies for spatial and multichannel wireless, high-definition sound transmission.

The Data Science Division harnesses Web3 and high-performance computing to enable experiential data perception, valuation, and secure monetization across industries, including sports & entertainment, biotech, education, fintech, real estate, healthcare, energy, and more.The Information Data Exchange® (IDE®) is a token exchange technology powered by Nasdaq Financial Infrastructure. The Company owns and operates exchanges powered by its patented technology, including but not limited to International Elements Exchange (IEE), Sports Illustrated Exchange (SIx), New York Interactive Advertising Exchange (NYIAX), and American Political Exchange (APE). The Company is headquartered in Philadelphia, PA. Learn more at https://www.dvlt.ai.CyberCatch Holdings, Inc. (TSXV:CYBE) (OTCQB:CYBHF) provides a proprietary, AI-enabled Software-as-a-Service (SaaS) solution that provides continuous compliance and cyber risk mitigation to organizations in critical segments, so they can be safe from cyber threats. The CyberCatch platform focuses on solving the root cause of why cyberattacks are successful: security holes from control deficiencies. It first helps implement all mandated and necessary controls, then the platform automatically and continuously tests the controls from three dimensions (outside-in, inside-out and social engineering) to find control failures so one can fix them promptly to stay compliant and safe from attackers. Learn more at: https://www.cybercatch.com.This press release is for informational purposes only and is not intended to and does not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any offer, solicitation or sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act, or an exemption therefrom. https://www.businesswire.com/news/home/20260501498832/en/Contactsmarketing@dvlt.ai Investor Contact: Edward Barger VP, Investor Relations ebarger@dvlt.ai | ir@dvlt.ai Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.