10 Best Penny Stocks Under $1 According to Hedge Funds

7. Datavault AI Inc. (NASDAQ:DVLT)

Number of Hedge Fund Holders: 5 

Stock Price as of Last Close of May 12: $0.56 

Datavault AI Inc. (NASDAQ:DVLT) is one of the best penny stocks to invest in.

TheFly reported on May 7 that DVLT announced that management has begun evaluating a potential dividend spin-out of its Acoustic Sciences business into a separate publicly traded company. The proposed new entity, expected to be named “API Media,” would combine operations including ADIO, WiSA, Event Citadel, and API Media. The company has reserved the NASDAQ ticker “ADIO” for the planned listing.

The transaction is still in the assessment and planning stage and would require board approval, final agreements, regulatory clearance, and completion of closing conditions before proceeding. DVLT has engaged Houlihan Lokey as financial advisor and Paul Hastings LLP as legal counsel, while also reviewing additional investment banking partners to support the process. The move reflects early-stage structuring work around a potential separation aimed at unlocking value from its Acoustic Sciences segment.

Additionally, in a separate move, it was reported on May 1 that Datavault AI Inc. (NASDAQ:DVLT) and CyberCatch Holdings have entered into a binding letter of intent outlining a planned all-stock acquisition of CyberCatch by Datavault AI. The transaction is structured as a court-approved plan of arrangement, under which Datavault AI would acquire 100% of CyberCatch’s issued and outstanding shares in exchange for approximately 49.9 million newly issued Datavault AI common shares.

The deal implies an aggregate valuation of about C$136.8 million for CyberCatch equity. Following completion, CyberCatch is expected to operate as a subsidiary of DVLT, with leadership integration and defined ownership distribution between existing shareholders. The agreement remains subject to negotiation of a definitive contract, due diligence, board and shareholder approvals, court approval, and regulatory clearances from relevant exchanges, along with other standard closing conditions.

Datavault AI Inc. (NASDAQ:DVLT) is an AI and data infrastructure company based in Philadelphia. It focuses on Web3 data monetization and high-performance computing software.