Datavault AI and CyberCatch Announce Signing of Binding Letter of Intent for Datavault AI to Acquire CyberCatch to Accelerate AI-Driven, Quantum-Resistant Cyber Risk Mitigation Solutions

Datavault AI (NASDAQ: DVLT) has signed a binding letter of intent to acquire CyberCatch Holdings (TSXV: CYBE; OTCQB: CYBHF) in an all-stock deal, positioning the combined company to deliver AI-driven, post-quantum-ready cyber risk mitigation and continuous compliance at scale. The move lands as AI-enabled attacks surge and the timeline for cryptographically relevant quantum computing compresses to as early as 2029.

Deal snapshot

Under the LOI, Datavault AI plans to acquire 100% of CyberCatch via a court-approved plan of arrangement under the Business Corporations Act (British Columbia). CyberCatch’s roughly 26.8 million common shares would be exchanged for approximately 49.9 million newly issued Datavault AI shares, valuing CyberCatch at CAD $5.11 per share, or about CAD $136.8 million. CyberCatch securities convertible into or exercisable for common shares will be exchanged for Datavault AI shares on a cashless basis at a deemed value of USD $2.00 per DVLT share.

Post-close, Datavault AI stockholders are expected to own approximately 92.48% of the combined company and CyberCatch shareholders about 7.52% (non-fully diluted). CyberCatch would operate as a San Diego–based subsidiary, led by founder Sai Huda as President and reporting to Datavault AI CEO Nathaniel T. Bradley. The transaction, anticipated to rely on the Section 3(a)(10) exemption under the U.S. Securities Act, remains subject to due diligence, definitive documentation, board, court, shareholder, and stock exchange approvals (Nasdaq and TSX Venture Exchange). The parties agreed to a 45-day exclusivity period to negotiate a definitive agreement.

Why now: AI threats and a quantum clock

Adversaries are accelerating. CrowdStrike’s 2026 Global Threat Report cites an 89% year-over-year rise in AI-enabled attacks in 2025, while average eCrime breakout time fell to 29 minutes. At the same time, Google Quantum AI research suggests elliptic curve cryptography could be broken with fewer than 500,000 physical qubits—an order of magnitude less than prior estimates—and Google has set 2029 as its internal deadline to migrate authentication systems to quantum-resistant cryptography.

Strategic fit and market tailwinds

• Market growth: Gartner projects worldwide end-user spending on information security to hit $240 billion in 2026; AI-amplified security could reach $160 billion by 2029 (up from $49 billion in 2025).
• Rising costs: IBM’s 2025 Cost of a Data Breach Report pegs the average U.S. breach at $10.22 million (global average $4.44 million).
• Regulatory momentum: Phase 1 of DoD’s CMMC program is in effect, with mandatory Level 2 third-party assessments starting November 2026 across approximately 220,000 Defense Industrial Base entities. CyberCatch’s platform is designed to align with CMMC, NIST SP 800-171, NIST CSF 2.0, HIPAA, ISO 27001, PCI DSS, and more.

Inside CyberCatch’s platform

CyberCatch delivers a patented, AI-enabled SaaS solution for continuous compliance and cyber risk mitigation. It pairs generative AI for control implementation and a Cyber Hygiene Score with agentic AI that continuously simulates threat-actor TTPs to run penetration tests and produce a Cyber Breach Score. The platform hunts for control gaps across three dimensions—outside-in, inside-out, and social engineering—replacing annual, manual pen tests with continuous, specialized agent-based testing mapped to leading frameworks.

MARS-MABE: toward quantum-resistant access control

CyberCatch is advancing its patent-pending multi-authority, attribute-based encryption with revocation (MARS-MABE) to be quantum-resistant. Compared to traditional RSA or AES-only approaches, MARS-MABE offers:

• Fine-grained, attribute-based access to data.
• Granular limitation to specific data subsets.
• Instant revocation for targeted subsets without re-encrypting entire datasets, improving speed and reducing cost.

Leadership, customers, and ecosystem

Founder and CEO Sai Huda—author of the bestseller “Next Level Cybersecurity,” co-author of Canada’s National Cybersecurity Standard, and inventor of USPTO Patent No. 11,297,094—leads CyberCatch. Its board and advisors include Tom Ridge (first U.S. DHS Secretary), Dr. Marv Langston (former DARPA Information Systems Director and U.S. Navy Cybersecurity Chief), and Scott Tait (former U.S. Navy Commander and National Security Advisor at the Joint Chiefs).

CyberCatch serves customers across the U.S. defense supply chain, healthcare, financial services, manufacturing, education, and the public sector. Capabilities expanded in February 2026 with the acquisition of multi-authority attribute-based encryption technology (now MARS-MABE) and reseller/referral partnerships, including with Speridian Technologies and partners serving U.S. government agencies.

Planned integration across the Datavault AI stack

Following close, CyberCatch is expected to operate as the cybersecurity and continuous-compliance layer across Datavault AI’s portfolio, including DataValue, DataScore, and the Information Data Exchange (IDE), running natively on Available Infrastructure’s SanQtum AI quantum-resistant, zero-trust edge platform. Datavault AI targets deployment across 1,000 urban micro-edge “neocloud” sites in 100+ U.S. cities by year-end 2026, and will extend coverage to Acoustic Sciences division technologies (WiSA, ADIO, Sumerian) serving sports and entertainment, biotech, education, fintech, real estate, healthcare, and energy. For federal and regulated workloads, continuous attestation to NIST, CMMC, ISO 27001, SOC 2, HIPAA, and PCI DSS is an increasingly critical procurement and renewal requirement.

The combined offering is intended to give customers a secure pathway from quantum-ready compute through AI-driven data analytics, with real-time risk and compliance signals at every layer.

Executive commentary

“Cybersecurity is now the precondition for data and AI,” said Nathaniel T. Bradley, CEO of Datavault AI. “CyberCatch’s continuous compliance platform adds a real-time risk signal to DataValue, DataScore, and the IDE across our quantum-secured edge footprint.”

“Datavault AI’s quantum-ready edge is the infrastructure our customers need,” added CyberCatch founder Sai Huda. “Together, we provide a unified secure-data platform with continuous compliance and cyber risk mitigation built in.”

About the companies

Datavault AI builds AI-driven data experiences, valuation, and monetization solutions across its Data Sciences and Acoustic Sciences divisions. Its IDE token exchange technology is powered by Nasdaq Financial Infrastructure, with exchanges including International Elements Exchange (IEE), Sports Illustrated Exchange (SIx), New York Interactive Advertising Exchange (NYIAX), and American Political Exchange (APE). Headquartered in Philadelphia, PA. Learn more: https://www.dvlt.ai

CyberCatch provides a proprietary AI-enabled SaaS platform for continuous compliance and cyber risk mitigation, focusing on eliminating control deficiencies—the root cause of successful attacks. Learn more: https://www.cybercatch.com

Regulatory and legal notice

No Offer or Solicitation: This article is informational and does not constitute an offer to sell or a solicitation to buy any securities in any jurisdiction.

Forward-Looking Statements: This article includes forward-looking statements subject to risks and uncertainties, including the negotiation of a definitive agreement, receipt of shareholder, court, regulatory, and stock exchange approvals, integration execution, reliance on exemptions from registration, market conditions, technology development (including post-quantum cryptography), competitive dynamics, financing, and regulatory changes. Actual outcomes may differ materially. Refer to Datavault AI’s SEC filings at www.sec.gov and CyberCatch’s filings on SEDAR+ at www.sedarplus.ca. The companies undertake no obligation to update forward-looking statements except as required by law.