Datavault to receive $120M cash contribution from Scilex

Datavault (DVLT) has executed a binding term sheet for a cash contribution and revenue participation agreement with Scilex (SCLX). The term sheet contemplates that Scilex will make an upfront cash contribution to Datavault AI in the amount of $120M, and, in consideration therefor, Datavault AI will pay to Scilex an amount equal to: 30% of all gross revenues recognized by Datavault AI attributable exclusively to the quantum-ready, zero trust edge network, payable until the aggregate amount of such payments received by Scilex equals $250M; once the Interim Cap is reached, 15% of Network Revenues, payable until the aggregate amount of such payments received by Scilex equals $1.2B; and once the Additional Cap is reached, 5% of Network Revenues. The $120M cash contribution will be used to fund the deployment of Datavault AI’s quantum-ready edge network, including build-out, equipment, related working capital, and reasonable overhead expenses directly attributable thereto. Datavault AI and Available Infrastructure’s initial deployment in New York and Philadelphia is expected to go live in Q2. The Scilex transaction is targeted to close in multiple tranches with the final tranche before the end of 2026. Datavault AI and Available Infrastructure look forward to expanding this national rollout and supporting additional customer deployments that benefit from secure communications, secure storage, near-edge compute, and secure data processing.