Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003888
Chunk: 255

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 255
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 Refer to Note 11 - Related Party Transactions, Common Stock Warrants.

The original maturity date of the
2021 Revolving Loan Agreement was May 15, 2022, which has been mutually extended to May 15, 2025. In December 2023, the Company repaid
$5,000,000 of the principal balance of the outstanding advances. During 2024, the Company drew $3.7 million on the revolving loan. Following
consummation of the Business Combination, the Company and the Bank began discussions regarding transfer of the loan to the Bank’s
commercial loan portfolio from the First Republic transferred loan portfolio. During the interim, the remaining undrawn amount of $2.3
million may not be borrowed by the Company until transfer.

Convertible Note Payable

On and around September 12, 2024, the
Company, Legacy Veea, and NLabs Inc. entered into note purchase agreements (the “Note Purchase Agreements”) with certain
accredited investors unaffiliated with Plum and Legacy Veea (each, an “Investor”) for the sale of unsecured subordinated
convertible promissory 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 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