Scilex to invest $150 million in bitcoin in Datavault AI deal

Scilex Holding Company (NASDAQ: SCLX) announced it will make a $150 million bitcoin investment in Datavault AI Inc. (NASDAQ: DVLT) under a purchase agreement between the two companies.

The pharmaceutical company focused on non-opioid pain management products said the investment is intended to provide growth capital for Datavault to expand its supercomputing infrastructure and data exchange operations.

Under the agreement terms, Scilex expects to receive up to 278,914,094 shares of Datavault common stock at an effective purchase price of $0.5378 per share. The transaction will occur in two tranches, with 15 million shares issued at closing and the remainder through a pre-funded warrant following stockholder approval.

Scilex will gain board representation rights, including the ability to nominate two directors while maintaining at least 10% ownership, or one director with ownership between 5% and 10% of Datavault's common stock.

Datavault AI operates a cloud-based platform serving multiple industries including biotech, energy, and entertainment through its acoustic science and data science divisions. The company's technology includes patented wireless audio transmission systems and high-performance computing solutions for data monetization.

"Datavault's cutting-edge technologies align perfectly with the biotech sector's need for advanced data analytics, AI-driven insights, and super computing power," said Henry Ji, CEO of Scilex, in a statement.

Scilex commercializes pain management products including ZTlido for neuropathic pain, ELYXYB for migraine treatment, and Gloperba for gout prevention. The company also has three product candidates in development for various pain conditions.

The investment requires approval from Datavault stockholders for the issuance of shares exceeding 19.99% of the company's pre-financing outstanding shares, according to the press release.

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