Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 78

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 78
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 may be less than the value the holders would have received if they had exercised
their Public Warrants at a later time where the underlying share price is higher and (2) may not compensate the holders for the value
of the Public Warrants.

44

A
Public Warrant holder may only be able to exercise its Public Warrants on a “cashless basis” under certain circumstances,
and if a Public Warrant holder does so, such Public Warrant holder will receive fewer the Common Stock from such exercise than if a Public
Warrant holder were to exercise such Public Warrants for cash.

The
Warrant Agreement provides that in the following circumstances holders of Warrants who seek to exercise their Public Warrants will not
be permitted to do so for cash and will, instead, be required to do so on a cashless basis in accordance with Section 3(a)(9) of the
Securities Act: (i) if the Common Stock issuable upon exercise of the Public Warrants are not registered under the Securities Act in
accordance with the terms of the Warrant Agreement; (ii) if Veea has so elected and the Common Stock are at the time of any exercise
of a Public Warrant not listed on a national securities exchange such that they satisfy the definition of “covered securities”
under Section 18(b)(1) of the Securities Act; and (iii) if Veea has so elected and it calls the Public Warrants for redemption. If you
exercise your Public Warrants on a cashless basis, you would pay the Warrant exercise price by surrendering all of the Public Warrants
for that number of the Common Stock equal to the less of (A) the quotient obtained by dividing (x) the product of the number of the Common
Stock underlying the Public Warrants, multiplied by the excess of the “fair market value” of the Common Stock (as defined
in the next sentence) over the exercise price of the Public Warrants by (y) the fair market value and (B) 0.361. The “fair market
value” is the average reported closing price of the Common Stock for the 10 trading-days ending on the third trading-day prior
to the date on which the notice of redemption is sent to the holders of the Public Warrants. As a result, you would receive fewer shares
of the Common Stock from such exercise than if you were to exercise such Public Warrants for cash.

There
can be no assurance that the Public W