Veea raises $6 million in public offering of stock and warrants

NEW YORK - Edge infrastructure company Veea Inc. (NASDAQ:VEEA), currently valued at $20.79 million in market capitalization, announced today the closing of its public offering, raising approximately $6 million in gross proceeds before deducting fees and expenses. According to InvestingPro data, the company has been facing significant financial challenges, with negative EBITDA of $27.39 million in the last twelve months.

The offering included 9,189,096 shares of common stock and warrants to purchase an equivalent number of shares at a combined price of $1.00 per share and accompanying warrant. The warrants carry an exercise price of $1.10 per share, are immediately exercisable, and will expire in five years.

Of the total securities issued, 3,239,096 shares and accompanying warrants went to NLabs Inc., an existing stockholder affiliated with Veea’s CEO. These securities were issued in exchange for extinguishing approximately $3.24 million in outstanding non-convertible promissory notes held by NLabs.

Veea stated it intends to use the net proceeds for inventory investments, customer support infrastructure, working capital, and general corporate purposes. The funding comes at a crucial time, as InvestingPro analysis shows the company’s current ratio of 0.54 indicates short-term obligations exceed liquid assets, highlighting the importance of this capital raise.

A.G.P./Alliance Global Partners served as the sole placement agent for the offering, which was conducted pursuant to registration statements filed with the Securities and Exchange Commission.

Founded in 2014 and headquartered in New York City, Veea provides edge connectivity, computing, and AI solutions through its VeeaHub STAX platform and VeeaONE platform. The company’s products offer edge networking, security, and storage capabilities for businesses and connected communities. With revenue of just $0.14 million in the last twelve months and an overall Financial Health Score rated as WEAK by InvestingPro, investors seeking deeper insights can access 12 additional ProTips and comprehensive financial metrics through an InvestingPro subscription.

The information in this article is based on a press release statement from Veea Inc.

In other recent news, Veea Inc. announced the pricing of a public offering expected to generate approximately $6 million in gross proceeds. The offering includes 6 million shares of common stock and accompanying warrants, with each unit priced at $1.00. Additionally, Veea’s subsidiary, VeeaSystems Inc., has signed a three-year supply agreement with Telcel, a Mexican telecommunications company. This agreement involves providing a Platform-as-a-Service solution through VeeaHub STAX-5G, which integrates 4G and 5G connectivity, along with other advanced features. Furthermore, Veea has adopted the Walrus decentralized data storage protocol to enhance its VeeaHub STAX edge solution. This integration is expected to improve data transport and storage capabilities for decentralized applications. These developments are part of Veea’s ongoing efforts to expand its technological offerings and partnerships.

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