Datavault AI and CyberCatch Announce Signing of Binding Letter of Intent

• 02 May 2026
• TM Team
• 0 Comments

Datavault AI Inc., 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.

Strategic Rationale

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.