Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002716
Chunk: 261

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 261
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, (the “Bank”) providing up to $ 14,000,000of advances (the “2021 Revolving Loan Agreement”). The advances accrue interest at a variable rate based on an index rate established by reference to the average 12-month trailing one-year US treasuries plus a spread of 1.80% per annum and a minimum floor rate of 1.5% per annum. The Company was not required to provide collateral for the advances or comply with any covenants. The advances were secured by a lien on certain personal assets of the CEO. In consideration for the security provided by the CEO, the Company issued common stock warrants to NLabs a significant shareholder of the Company (“NLabs”) in consideration for the CEO’s guaranteeing the advances. Refer to Note 11 - Related Party Transactions, Common Stock Warrants.

The original maturity date of the
2021 Revolving Loan Agreement was , which has been mutually extended to May 15, 2025. In December 2023, the Company repaid
$ of the principal balance of the outstanding advances. During 2024, the Company drew $ 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 $
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 $ 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 $ 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