Core AI Divests Siyata To Streamline AI Ambitions

Core AI Holdings Inc. (NASDAQ:CHAI) said Monday it has signed and closed a definitive agreement to divest Siyata Mobile Inc. and its subsidiaries, effective immediately.

The move is aimed at streamlining operations and reallocating capital toward the company's core artificial intelligence initiatives.

The divestiture marks a completed strategic step as Core AI sharpens its focus on AI-driven growth after determining that expected synergies with Siyata did not materialize.

Management Commentary

"As we continued to deepen our focus on artificial intelligence, it became clear that the anticipated technology and commercial synergies with Siyata did not materialize," said Aitan Zacharin, CEO of Core AI Holdings.

"The divestiture eliminates approximately $12 million in annual cash burn, materially reduces losses and simplifies our balance sheet. Furthermore, it also better aligns our asset base with our core AI strategy, strengthens our financial profile and allows us to direct capital and resources to higher-return opportunities we believe will drive sustainable shareholder value."

Transaction Terms

Under the agreement, Core AI will receive $100,000 in initial cash consideration, along with earn-out consideration tied to Siyata's performance. The earn-out includes three annual payments, each equal to the greater of $200,000 or 1% of Siyata's gross revenue for the applicable period, based on audited IFRS financial statements.

Pro Forma Financial Impact

Based on unaudited pro forma figures as of Sept. 30, 2025, Core AI's net loss for the nine months ended Sept. 30 narrowed to $4.8 million from $12.5 million, an $8.7 million improvement driven primarily by the removal of Siyata's operating expenses. Total assets declined to $31.6 million from $51.6 million, while total liabilities fell to $18.3 million from $22.4 million.

"With the divestiture of Siyata complete, Core AI is operating with a leaner cost structure and a clearer growth mandate," Zacharin added. "We are now positioned to more aggressively invest in advancing our AI platform and pursue targeted growth initiatives that we believe can scale efficiently."

CHAI Price Action: Core AI Holdings shares were unchanged at $2.06 at the time of publication on Monday, according to Benzinga Pro data.

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