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Datavault AI Inc. (NASDAQ:DVLT), a semiconductor company currently valued at $34.76 million market cap, announced on Monday the initial closing of a securities purchase agreement with institutional investors, securing $5 million in registered direct offering and $10 million upon fulfillment of certain conditions. According to InvestingPro data, the company has been quickly burning through cash, with analysts anticipating significant sales growth this year despite weak gross profit margins of 14%. The agreement, dated March 31, 2025, includes senior secured convertible notes totaling $5,555,555 in principal for the initial investment and an additional $11,111,111 in principal for the subsequent investment, along with warrants to purchase up to 19,346,101 shares of common stock.
The initial closing on April 3, 2025, saw the issuance of senior secured convertible notes with a 10% original issue discount, maturing 18 months from the issue date. With the stock trading near its 52-week low of $0.69, this financing comes at a crucial time. InvestingPro analysis reveals 15+ additional key insights about DVLT’s financial health and valuation metrics, available exclusively to subscribers. The notes, which rank senior to all other existing indebtedness and equity, do not accrue interest unless an event of default occurs, in which case interest will accrue at 12% per annum. The notes are convertible into common stock at an initial price of $1.00 per share or at an alternate conversion price, which is the greater of the floor price ($0.1794) or 90% of the lowest volume-weighted adjusted price of the common stock in the ten trading days prior to conversion.
The warrants issued have an initial exercise price of $0.8615 per share and are exercisable upon effectiveness of stockholder approval, expiring five years from that date. The exercise price is subject to adjustment based on certain conditions, such as lower-priced issuances or corporate events like stock splits.
Datavault AI has entered into a security agreement providing a security interest in all of the company’s assets and a subsidiary guarantee, ensuring all domestic subsidiaries guarantee the company’s obligations under the notes. The company has also agreed to file a resale registration statement within 15 days upon request from the purchasers and to use commercially reasonable efforts to make it effective within 45 days.
The company is restricted from offering or selling any common stock or securities convertible into common stock for 45 days post-closing and cannot issue certain securities that would constitute a Variable Rate Transaction (JO:NTUJ) until all notes are held by the purchasers. Additionally, purchasers have the right to participate in up to 65% of any future issuances by the company for 18 months following the date the notes are no longer outstanding.
In connection with the initial closing, Datavault AI paid an 8% fee of the gross proceeds to Maxim Group LLC, the placement agent, and reimbursed up to $15,000 for expenses related to the offerings. The placement agent also received a right of first refusal for 30 days from August 22, 2025, to provide exclusive investment banking services to the company.
This financing move, based on the press release statement, is part of Datavault AI’s strategy to secure additional capital and strengthen its financial position for future growth. With a current ratio of 1.57 and revenue growth forecast of 424% for FY2025, the company aims to improve its financial standing. For deeper insights into DVLT’s valuation and growth prospects, check out the comprehensive Pro Research Report available on InvestingPro, offering expert analysis of 1,400+ top stocks.
In other recent news, Datavault AI Inc. has reported a 28.4% increase in revenue for fiscal year 2024, with revenues reaching approximately $2,674,000, up from $2,083,000 in the previous year. The company’s gross profit has also improved significantly, moving from a deficit to an expected $376,000. However, operating expenses have increased to about $21,514,000, and the net loss is projected to rise to approximately $51,409,000. In a separate development, Datavault AI completed a $5.4 million securities offering through the sale of common stock and warrants, with Maxim Group LLC acting as the placement agent. This offering was conducted under the company’s shelf registration statement, effective since September 2022. Additionally, WiSA Technologies, the former name of Datavault AI, has amended its asset purchase agreement with CompuSystems, Inc., involving a revised breakup fee and a requirement for stockholder approval. These recent developments highlight the company’s ongoing financial and strategic activities, including a name change from WiSA Technologies to Datavault AI.
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