Veea Inc. subsidiary signs three-year supply agreement with Telcel

Veea Inc. (NASDAQ:VEEA), currently trading near its 52-week low of $1.28 with a market capitalization of $47.4 million, announced Thursday that its wholly owned subsidiary, VeeaSystems Inc., has entered into a Framework Agreement for Licenses, Equipment and Services with RadioMovil Dipsa, S.A. de C.V. (Telcel), a Mexican wireless telecommunications company owned by América Móvil. The agreement became effective Thursday, according to a statement based on a recent SEC filing.

The agreement follows the completion of certification and homologation processes with Telcel and successful trials of VeeaSystems’ VeeaHub STAX-5G product with selected Telcel enterprise customers. The VeeaHub STAX-5G device integrates 4G and 5G cellular connectivity, Wi-Fi 6 access point, IoT gateway, storage, and Linux server capabilities, and is designed to deliver managed connectivity, AI-driven cybersecurity services, and application hosting, including support for third-party applications. According to InvestingPro data, Veea faces significant cash burn challenges, with a negative EBITDA of $27.4 million in the last twelve months.

Under the terms of the agreement, VeeaSystems will supply a Platform-as-a-Service solution featuring 5G-based Fixed Wireless Access (FWA) through the VeeaHub STAX-5G device, which incorporates Telcel SIM cards. Both companies have agreed to collaborate on the development of marketing strategies, branding, and the promotion of VeeaSystems’ services to Telcel’s customers across Mexico.

The initial term of the agreement is three years, with automatic renewal for successive one-year periods unless either party provides 90 days’ notice of non-renewal.

Veea Inc.’s common stock and warrants are listed on the Nasdaq Stock Market under the symbols (NASDAQ:VEEA) and NASDAQ:VEEAW, respectively.

This information is based on a press release statement filed with the Securities and Exchange Commission.

In other recent news, Veea Inc. announced a three-year supply agreement with Telcel for its VeeaHub STAX-5G product, which will provide 5G-based Fixed Wireless Access solutions. This agreement follows successful certification and trials with Telcel’s enterprise customers. Additionally, Veea has adopted the Walrus decentralized data storage protocol for its VeeaHub STAX edge solution, enhancing data transport and storage capabilities for decentralized applications and AI development.

In another development, Veea plans to offer common stock and warrants, though the number of shares has not been specified. The company has also formed an alliance with StarGroup to improve digital services in rural Mexico, aiming to support education and commerce through enhanced connectivity. Furthermore, Veea has acquired technology assets from Crowdkeep Inc., which will be integrated into its Edge Platform to boost IoT and edge AI offerings. This acquisition is expected to enhance workplace operations management through improved asset tracking and equipment monitoring.

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