Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003892
Chunk: 204

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 204
---
 In December
2023, the Company repaid $5,000,000 of the principal balance of the outstanding advances.

Term Note

In March 2023, the
Company entered into a $5,000,000 term loan agreement with an unrelated third party lender. The loan agreement was secured by a lien
on the Company’s assets and guaranteed by the Company’s CEO. The full amount of the loan was drawn at closing. The original
maturity date of the loan was August 31, 2023 and was subsequently extended to October 31, 2023. The Company initially issued
warrants to the lender to purchase 3,300,000 shares of the Company’s Series A-1 Preferred Stock (the “Initial Warrants”).
The exercise price of the Initial Warrants is $2.00 per share. The term of Initial Warrant covering 2,500,000 of the 3,300,000 shares
expires upon repayment of the loan (the “Repayment Warrant”). The term of the remaining Initial Warrants covering 800,000
shares is five years. Prior to original maturity of the term loan agreement, the maturity date was extended to October 31,
2023. Upon extension of the maturity date, the Company issued warrants to purchase 400,000 shares of Series A-1 Preferred Stock
(the “Extension Warrants”). The exercise price of the Extension Warrants is $.01 per share and the warrant term is five years.
The Company repaid the outstanding principal and accrued interest on the secured term loan on November 10, 2023, in the amount of
$3,064,897. In connection with the repayment, the lender’s liens were released and the Repayment Warrant expired.

Convertible Notes

In July 2023, the Company
issued a $3,000,000 convertible note to iFREE Group (HK) Limited (“iFree”). The interest rate on the note is 8%. The note
(“iFree Note”) matures September 30, 2024. The note is (i) optionally convertible at any time at the holder’s
election and (ii) automatically converts upon the closing of a qualified financing, defined to be the receipt by the Company of
at least $15,000,000 proceeds (including debt conversion) from the issuance of equity or equity-related securities. Upon the Company’s
receipt of $12,000,000 proceeds from the issuance and sale of shares of its Series