Objective: Neonates are highly susceptible to seizures, which can have severe long-term consequences if undetected and left untreated. Early detection is crucial and typically requires continuous electroencephalography (EEG) monitoring in a hospital setting, which is costly, inconvenient, and requires specialized experts for diagnosis. In this work, we propose a new low-cost active dry-contact electrode-based adjustable EEG headset, a new explainable deep learning model to detect neonatal seizures, and an advanced signal processing algorithm to remove artifacts to address the key aspects that lead to the underdiagnosis of neonatal seizures. Methods: EEG signals are acquired through active electrodes and processed using a custom-designed analog front end (AFE) that filters and digitizes the captured EEG signals. The adjustable headset is designed using three-dimensional (3D) printing and laser cutting to fit a wide range of head sizes. A deep learning model is developed to classify seizure and non-seizure epochs in real-time. Furthermore, a separate multimodal deep learning model is designed to remove noise artifacts. The device is tested on a pediatric patient with absence seizures in a hospital setting. Simultaneous recordings are captured using both the custom device and the commercial wet electrode device available in the hospital for comparison. Results: The signals obtained using our custom design and a commercial device show a high correlation (>0.8). Further analysis using signal-to-noise ratio values shows that our device can mitigate noise similar to the commercial device. The proposed deep learning model has improvements in accuracy and recall by 2.76% and 16.33%, respectively, compared to the state-of-the-art. Furthermore, the developed artifact removal algorithm can identify and remove artifacts while keeping seizure patterns intact.