Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003892
Chunk: 261

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 261
---
 part of a private placement offering of up to $15 million in
purchase price for such September 2024 Notes in the aggregate. The sale of the September 2024 Notes (the “Financing Closing”)
occurred simultaneously with the Closing of the Business Combinationat the Financing Closing and a commitment from an Investor, of which
the Company received $3 million to date. 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 Legacy Veea’s 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”). As of September 30, 2024, 2,000,000 Transfer Shares were delivered to Investors. These Transfer Shares were recorded
at fair value at the date of transfer of approximately $21.6 million and represent a substantial discount on the September 2024 Notes.
As the Company has received $1.45 million of the total expected $15 million proceeds, a proportional amount ($19.5 million) of the substantial
discount has been deferred and recorded as a deferred financing asset until the remaining debt proceeds are received.

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,