Datavault AI secures $25M convertible note from Streeterville Capital

Datavault AI Inc. (NASDAQ: DVLT) entered into a Securities Purchase Agreement with Streeterville Capital, LLC on August 18, 2026, completing the initial closing of a financing transaction.

Under the agreement, Datavault AI issued an unsecured convertible promissory note with an original principal amount of $25,030,000 to Streeterville Capital, an accredited investor based in Utah, for a purchase price of $25,000,000. The additional $30,000 in principal covers the investor's transaction expenses. The company also issued 15,000,000 shares of common stock as pre-delivery shares for $1,500.

The note bears interest at 8% per annum and matures 30 months after funding. The investor may convert the note into common shares at a fixed price of $1.55 per share, subject to adjustment. Beginning January 1, 2027, or potentially October 1, 2026 if certain conditions are met, conversions may occur at 92% of the lowest volume-weighted average price over the preceding seven trading days.

Streeterville Capital also holds the right to invest up to an additional $25,000,000 through the purchase of additional convertible notes over a 12-month period on the same terms. The company established an initial reserve of 300,000,000 common shares for potential conversions.

Conversions are subject to a 9.99% beneficial ownership cap, and total share issuances are subject to Nasdaq Listing Rule 5635(d) limits unless stockholder approval is obtained. Datavault AI agreed to seek that approval within 90 days of closing.

Certain major stockholders entered into a voting agreement to support the required stockholder approval. The agreement includes an irrevocable proxy provision and a $25,000,000 liquidated damages clause if a major stockholder fails to comply.

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