Bullish indicating open at $55-$60, IPO prices at $37
Datavault AI Inc. (NASDAQ:DVLT) announced Monday it has entered into a Securities Purchase Agreement with certain institutional investors for a registered direct offering of senior secured convertible notes totaling $13,333,332 in principal amount, according to a press release statement and SEC filing. The company, currently valued at $44.54 million, has seen its stock price decline 75% year-to-date to $0.49, trading near its 52-week low. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value metrics.
Under the agreement, investors will purchase two tranches of senior secured convertible notes: Initial Notes with a principal amount of $6,666,666 for $6,000,000 and Additional Notes with a principal amount of $6,666,666 for another $6,000,000, subject to closing conditions. The Initial Closing is expected to occur on or about Tuesday, with the Additional Closing to follow after required stockholder approval. This financing comes at a crucial time, as InvestingPro data shows the company’s current ratio at 0.65, indicating short-term obligations exceed liquid assets.
The notes carry a 10% original issue discount, mature in 18 months, and do not accrue interest unless there is an event of default, in which case interest accrues at 12% per annum. The notes are convertible into common stock at an initial price of $1.00 per share, or at an alternate price equal to the greater of $0.1019 or 80% of the lowest volume weighted average price over the prior 20 trading days, following stockholder approval. If the alternate conversion price falls below the $0.1019 floor, the company must compensate note holders in cash.
Investors have the right to participate in up to 65% of any subsequent financings by Datavault AI for 18 months after the notes are no longer outstanding. The company also agreed to use up to 20% of future financing proceeds to redeem the notes at a 5% premium.
In addition, Datavault AI entered into exchange agreements with certain holders of its common stock purchase warrants, who agreed to exchange warrants exercisable for about 31 million shares for the same number of common shares, pending stockholder approval. The exchange shares will be issued under an exemption from registration.
The company also agreed to amend prior outstanding notes to adjust their alternate conversion pricing formula. Maxim Group LLC acted as placement agent for the offering and will receive an 8% fee on gross proceeds and reimbursement of up to $15,000 in expenses.
This information is based on a press release statement and Datavault AI’s Form 8-K filed with the Securities and Exchange Commission.
In other recent news, Datavault AI Inc. announced it has entered into an equity distribution agreement with Maxim Group LLC. This agreement allows the company to issue and sell up to $50 million of its common stock through at-the-market offerings, with Maxim acting as the sales agent. Additionally, Datavault AI has expanded its collaboration with IBM (NYSE:IBM) to commercialize its AI agents, DataScore and DataValue, which are built with IBM watsonx.ai. As part of this partnership, IBM will provide AI engineering talent and technical expertise to enhance Datavault’s offerings over multiple years.
Furthermore, Datavault AI has formed a strategic partnership with Burke Products, a supplier to major defense contractors like Lockheed Martin (NYSE:LMT) and Raytheon Technologies (NYSE:RTX). This collaboration aims to integrate Datavault AI’s data visualization and acoustic technologies into Burke’s systems for defense and aerospace applications. The company anticipates initial revenue from this partnership in 2025, with potential expansion into productized offerings by 2026. These developments reflect Datavault AI’s ongoing efforts to expand its market presence and technological capabilities.
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