Key Terms
plan of arrangement
regulatory
A plan of arrangement is a formal, court-approved agreement that reorganizes ownership or assets of a company—such as merging businesses, exchanging shares for cash or other securities, or splitting off parts of the company. Investors should care because it can change the value, number, and rights of their holdings and is often binding once approved by both shareholders and a court, offering more legal certainty than a simple vote. Think of it as a legally supervised recipe for how a company will be reshaped and who ends up with what.
quantum-resistant cryptography
technical
Cryptography designed to stay secure even if powerful quantum computers exist; it replaces or supplements today’s encryption so encoded data, signatures, and secure communications remain unreadable to future quantum attacks. Think of it as upgrading ordinary locks to ones that resist a new kind of master key — investors care because it protects customer data, financial records and transaction integrity, reduces legal and replacement risk, and can affect a company’s valuation and trust.
cashless-exercise basis
financial
A cashless-exercise basis is a way to convert stock options into shares without paying the option strike price in cash; instead, the option holder surrenders or sells a portion of the resulting shares to cover the exercise price and any required taxes or fees. It matters to investors because this method changes how many new shares actually enter the market and how much dilution existing shareholders face—like taking a portion of a cake before bringing it to the table, leaving less for everyone else.
software-as-a-service
technical
Software-as-a-service is software that users access online through a web browser or app while the provider hosts and maintains the program and data, typically for a recurring fee. Investors care because it creates steady, predictable revenue and often high customer retention — like renting a utility rather than buying a machine — which helps forecast cash flow and values a company more consistently over time.
Datavault AI Inc. is enhancing its quantum-secured edge platform with AI-driven, quantum-resistant cybersecurity risk mitigation capabilities through the acquisition of CyberCatch Holdings, Inc. The integration aims to bolster its Data Vault Artificial Intelligence Platform (AIP) with automatic cybersecurity checks and resolution features.
PHILADELPHIA — Datavault AI Inc., a company specializing in data monetization, credentialing, digital engagement, and real-world asset tokenization, announced today it has entered into a definitive agreement to acquire 100% of CyberCatch Holdings, Inc. in an all-cash transaction. CyberCatch, a cybersecurity firm with a patented, AI-enabled platform for continuous compliance and cyber risk mitigation, will be acquired via a court-approved plan of arrangement under the Business Corporations Act of British Columbia. This strategic move is expected to integrate CyberCatch’s advanced platform into Datavault AI’s Quantum Private Network (QPN) GPU ecosystem, targeting the information security market projected by Gartner to reach $213 billion in 2025.
Under the terms of the agreement, Datavault AI will acquire approximately 26.8 million CyberCatch common shares for $94,500,000 in cash, equating to $3.53 per share for CyberCatch shareholders. All outstanding dilutive securities of CyberCatch will be handled on a cashless-exercise basis. Following customary approvals, CyberCatch is anticipated to operate as a subsidiary based in San Diego, California. Sai Huda, founder, Chairman, and Chief Executive Officer of CyberCatch, will assume the role of President of the subsidiary, reporting to Nathaniel T. Bradley, CEO of Datavault AI.
Strategic Rationale: Navigating the Evolving Threat Landscape
This combination positions Datavault AI at the nexus of two rapidly expanding cybersecurity markets. The global information security market’s projected growth to $213 billion by 2025 underscores the significant opportunity for CyberCatch’s platform within Datavault AI’s SanQtum-secured edge ecosystem.
The cybersecurity landscape is increasingly fraught with sophisticated threats. Threat actors are leveraging AI to breach networks and deploy ransomware with unprecedented speed. CrowdStrike’s 2026 Global Threat Report highlights a 89% year-over-year increase in AI-enabled adversary attacks in 2025, with the average eCrime breakout time plummeting to just 29 minutes—a 65% acceleration compared to 2024. This escalating threat environment necessitates advanced, AI-driven defense mechanisms.
Furthermore, the acquisition positions Datavault AI for the burgeoning post-quantum security era. With major technology players like Google setting aggressive timelines for migrating to quantum-resistant cryptography, the urgency to protect sensitive data from future quantum computing threats is paramount. Google’s research indicates that the quantum computing threshold required to break current widely used encryption methods may be lower than previously estimated, accelerating the timeline for potential cryptographic vulnerabilities. CyberCatch’s ongoing efforts to adapt its patent-pending, multi-authority, attribute-based encryption technology (MARS-MABE) for quantum resistance, coupled with continuous agentic AI penetration testing, aims to create a next-generation cybersecurity stack poised to address critical sectors including healthcare, defense, manufacturing, financial services, and energy.
CyberCatch’s Advanced Platform and Leadership
CyberCatch’s core offering is its AI-enabled continuous cybersecurity compliance and risk mitigation platform. Leveraging generative AI, the platform verifies the implementation of all mandated security controls and assigns a Cyber Hygiene Score. Simultaneously, its agentic AI continuously simulates threat actor tactics, techniques, and procedures, conducts penetration tests, and calculates a Cyber Breach Score. This proactive approach is designed to identify and remediate security gaps before they can be exploited.
The platform offers a multi-dimensional testing approach—outside-in, inside-out, and social engineering—aligning with stringent frameworks such as NIST CSF 2.0, NIST 800-171, CMMC 2.0, ISO 27001, HIPAA, and PCI DSS. This replaces traditional, often infrequent, manual penetration tests with continuous, agent-driven simulations, a crucial advancement for organizations struggling with the cost and complexity of comprehensive human-led security assessments.
The agentic AI solution comprises specialized agents mimicking attacker skill sets, performing tasks from reconnaissance and vulnerability detection to exploitation and reporting. The platform provides detailed dashboard reporting, mapping control failures and compliance status against various regulatory frameworks for root cause analysis and targeted risk mitigation.
CyberCatch’s patent-pending MARS-MABE technology offers significant advantages over existing encryption methods like RSA and AES-256. It enables fine-grained data access based on user attributes, limits access to specific data subsets, and allows for instant revocation of access without requiring re-encryption of the entire dataset, thereby enhancing speed and reducing costs.
Leading CyberCatch is its founder, Chairman, and CEO, Sai Huda, a distinguished cybersecurity expert. Huda is the author of “Next Level Cybersecurity,” co-author of Canada’s National Cybersecurity Standard, and the inventor of U.S. Patent No. 11,297,094, “Automated and Continuous Cybersecurity Assessment with Measurement and Scoring.” His prior experience includes founding and leading Compliance Coach, which was acquired by FIS. The CyberCatch board and advisory board are notably strengthened by the presence of former U.S. government officials, including Tom Ridge, former Secretary of Homeland Security, and Dr. Marv Langston, former Director of Information Systems at DARPA.
CyberCatch’s clientele spans critical sectors including the U.S. defense supply chain, healthcare, financial services, manufacturing, education, and public sectors. The company has strategically expanded its capabilities through the acquisition of MARS-MABE technology and various reseller and referral partnerships, including with Speridian Technologies and Sterling Advisors Group, further broadening its reach into U.S. government agencies.
Seamless Platform Integration Across the Datavault AI Ecosystem
Post-acquisition, CyberCatch’s AI-enabled Software-as-a-Service platform is slated to become the cybersecurity and continuous compliance layer across Datavault AI’s existing technology suite. This integration will span Datavault AI’s DataValue®, DataScore®, and Information Data Exchange® (IDE®) solutions, operating on Available Infrastructure’s SanQtum quantum-resistant, zero-trust edge platform. It will also extend to Datavault AI’s Acoustic Sciences division technologies (WiSA®, ADIO®, Sumerian®) and IDE® deployments serving diverse industries, as well as federal and regulated-industry workloads where continuous compliance attestation is a critical procurement, audit, and renewal prerequisite.
This proposed acquisition aims to provide Datavault AI customers and partners with an integrated pathway from secure compute to AI-driven data analytics, underpinned by continuous compliance assurance at every stage.
Management Commentary
“Cybersecurity is no longer a separate stack from data and AI; it is the precondition for both,” stated Nathaniel T. Bradley, CEO of Datavault AI. “CyberCatch’s continuous compliance and cyber risk mitigation platform will add a real-time risk and compliance signal at every node of our edge fleet, from federal contractors to enterprise data customers, enhancing our DataValue, DataScore, and IDE offerings.”
Sai Huda, founder, Chairman, and Chief Executive Officer of CyberCatch, added, “Datavault AI’s quantum-ready edge platform provides exactly the next-generation infrastructure our customers need, particularly in critical sectors like defense, healthcare, and financial services, with cybersecurity intrinsically built in. Joining Datavault AI offers our customers a clear path to a unified secure-data platform with continuous compliance and cyber risk mitigation integrated at its core.”
Transaction Overview
Upon closing, CyberCatch will operate as a wholly-owned subsidiary of Datavault AI. The transaction is contingent upon requisite CyberCatch shareholder approval, court approval of the plan of arrangement in British Columbia, necessary approvals from the TSX Venture Exchange, and other customary closing conditions.
About CyberCatch
CyberCatch Holdings, Inc. provides a proprietary, AI-enabled software-as-a-service solution delivering continuous compliance and cyber risk mitigation for organizations in critical sectors. The CyberCatch platform addresses the root cause of cyberattacks—security gaps stemming from control deficiencies—by facilitating the implementation of mandated controls and then continuously testing them across multiple dimensions to identify and help remediate failures. Further details are available at https://www.cybercatch.com.
About Datavault AI
Datavault AI™ is at the forefront of AI-driven data experiences, asset valuation, and monetization within the Web 3.0 environment. The company’s cloud-based platform offers comprehensive solutions through its Acoustic Sciences and Data Sciences divisions. The Acoustic Sciences division features patented technologies in spatial and multichannel wireless high-definition sound transmission, while the Data Science division harnesses Web 3.0 and high-performance computing for experiential data perception, valuation, and secure monetization. Datavault AI serves a wide array of industries, including high-performance computing software licensing for sports, entertainment, biotech, education, fintech, real estate, healthcare, and energy. Its Information Data Exchange® (IDE®) facilitates the creation of Digital Twins and the licensing of name, image, and likeness by securely linking physical real-world objects to immutable metadata, promoting responsible AI development. The company is headquartered in Philadelphia, PA. More information can be found at https://dvlt.ai.
Forward-Looking Statements
This press release contains forward-looking statements, as defined under U.S. securities laws, concerning Datavault AI Inc. and its industry. These statements involve inherent risks and uncertainties and are based on current expectations and assumptions. Actual results may differ materially due to various risks, including the satisfaction of closing conditions for the CyberCatch acquisition, regulatory approvals, integration challenges, and competitive dynamics in the AI computing and cybersecurity markets. Investors are cautioned not to place undue reliance on these statements. Datavault AI undertakes no obligation to update these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except as required by law.
Industry and Market Data
Information and statistics regarding market data within this press release are derived from various independent third-party sources and management’s estimates and calculations. While believed to be reliable, this data has not been independently verified by Datavault AI. Market and industry data are inherently imprecise and subject to significant uncertainties.
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