Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002716
Chunk: 103

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 103
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issory notes (the “September 2024 Notes”) as part of a private placement offering of up to $15 million in purchase price for such September 2024 Notes in the aggregate (the “Financing Closing”). The Company received $1.45 million in proceeds from the issuance of its convertible promissory note with a commitment from a convertible note purchaser for the remaining unfunded amount of $13.55 million, which was to be funded on or prior to November 15, 2024, subsequently extended to December 15, 2024. On December 31, 2024, the Company and the convertible note purchaser entered into a mutual Settlement and Release Agreement terminating the purchaser’s obligation for the remaining unfunded amount of $13.55 million in exchange for a payment to the Company of $5,364,159, which includes amounts previously paid to the Company. In addition to a September 2024 Note, each Investor received as a transfer from NLabs immediately prior to the Financing Closing a number of shares of Private Veea Series A-1 Preferred Stock that upon the Closing became a number of registered shares of Common Stock equal to such Investors’ loan amount under their respective notes divided by $7.50 (the “Transferred Shares”).

The Company and Private Veea
are co-borrowers under each September 2024 Note (together, the “Borrowers”) and are jointly responsible for the obligations
to each Investor thereunder. Each September 2024 Note has a maturity date of 18 months after the Financing Closing but is prepayable
in whole or in part by the Borrowers at any time without penalty. The outstanding obligations under each September 2024 Note accrues
interest at a rate equal to the Secured Overnight Financing Rate plus 2% per annum, adjusted quarterly, but interest is only payable
upon the maturity date of the September 2024 Note as long as there is no event of default thereunder. Each September 2024 Note is unsecured
and expressly subordinated to any senior debt of the Borrowers. The September 2024 Notes and the Note Purchase Agreements do not include
any operational or financial covenants for the Borrowers. Each September 2024 Note includes customary events of default for failure to
pay amounts due on the maturity date, for failure to otherwise comply with the Borrowers’ covenants thereunder or for Borrower
insolvency events, in each case, with customary cure periods, and upon