Datavault AI secures $16.7 million through note offerings

Datavault AI Inc. (NASDAQ:DVLT), a semiconductor and related devices manufacturer with a market capitalization of $66.13 million, has announced the successful completion of its additional closing of senior secured convertible notes and warrants, according to a recent SEC filing. InvestingPro analysis indicates the company is currently trading near its Fair Value, though financial health metrics suggest caution with an overall weak rating. On Monday, May 19, 2025, the Delaware-based company, formerly known as WISA Technologies, Inc., secured an aggregate principal amount of $11,111,111 through the sale of additional notes, following an initial offering of $5,555,555 in notes on April 3, 2025.

The offerings were made under a Securities Purchase Agreement dated March 31, 2025, with certain institutional investors. Alongside the notes, Datavault AI issued warrants to purchase up to 19,346,101 shares of its common stock, with 6,448,700 warrants issued during the initial closing and an additional 12,897,401 warrants during the recent closing. The company’s stock has shown remarkable recent momentum, posting a 40.77% return over the past week, though InvestingPro data reveals concerning liquidity metrics with a current ratio of 0.65.

The notes, which carry a 10% original issue discount, are set to mature 18 months from the date of issuance and are convertible into shares of common stock at an initial conversion price of $1.00 per share. The company has agreed to file a registration statement for the shares issuable upon exercise of the warrants within 15 days upon receiving a written request from the purchasers.

Datavault AI has also committed to not offer, sell, or dispose of any shares of common stock or securities convertible into shares of common stock for 45 days following each closing date. Furthermore, the company has pledged not to issue securities that would constitute a Variable Rate Transaction (JO:NTUJ) as long as any purchaser holds the notes.

Additionally, for 18 months following the date the notes are no longer outstanding, the purchasers have the right to participate in up to 65% of any subsequent financing by the company on the same terms offered to other investors.

The notes are subject to a floor price of $0.1794 and include provisions for events of default, negative covenants, and beneficial ownership limitations. The company is obligated to use up to 30% of proceeds from future financings to redeem the notes at a rate of 105% of the aggregate principal amount being redeemed.

The warrants issued have an exercise price of $0.8615 per share, are exercisable immediately, and will expire five years from the issuance date. The exercise price is subject to adjustments, including a downward adjustment if the company issues lower-priced shares or equivalents, and standard adjustments for stock splits and other corporate events.

This report is based on a press release statement and provides a summary of key financial activities and obligations established by Datavault AI Inc. as detailed in the SEC filing. For deeper insights into DVLT’s financial health, growth prospects, and detailed analysis, including 14 additional key ProTips and comprehensive valuation metrics, investors can access the full InvestingPro Research Report, part of the platform’s coverage of over 1,400 US stocks.

In other recent news, Datavault AI Inc. reported a 28.4% increase in revenue for fiscal 2024, reaching approximately $2,674,000, up from $2,083,000 in fiscal 2023. The company also saw a significant improvement in gross profit, moving from a deficit of $3,457,000 to an estimated profit of $376,000. However, operating expenses rose to approximately $21,514,000, and the company projected a net loss of around $51,409,000 for the year. In other developments, Datavault AI secured $15.5 million through a securities purchase agreement involving convertible notes and warrants, with an initial closing of $5 million and $10 million contingent upon certain conditions. The company also entered into a series of lock-up agreements with NYIAX, Inc., following a share exchange deal, which aims to stabilize stock liquidity by staggering the availability of shares over time. Additionally, Datavault AI extended the deadline for its asset purchase agreement with CompuSystems, Inc. to May 23, 2025, marking the fourth amendment to the agreement. These recent developments highlight Datavault AI’s ongoing efforts to strengthen its financial position and strategic partnerships.

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