Veea Inc. Announces Pricing of Approximately $9.2 Million Public Offering

Rhea-AI Summary

Veea (NASDAQ: VEEA) has announced the pricing of its public offering, consisting of 6,000,000 shares of common stock and warrants at a combined price of $1.00 per share and accompanying warrant. The company expects to receive $6.0 million in cash gross proceeds.

The warrants will have an exercise price of $1.10 per share, exercisable immediately with a 5-year expiration. Additionally, NLabs, an affiliate of Veea, will exchange $3.239 million in promissory notes for 3,239,096 shares and warrants. The offering is expected to close around August 14, 2025.

Proceeds will be used for inventory investments, customer support infrastructure, working capital, and general corporate purposes. A.G.P./Alliance Global Partners is serving as the sole placement agent.

Positive

• Raising $6.0 million in fresh capital through public offering
• Debt reduction through conversion of $3.239 million in promissory notes
• Strengthening balance sheet through inventory and infrastructure investments

Negative

• Significant dilution through issuance of 9.239 million new shares and warrants
• Low offering price of $1.00 per share indicates challenging market conditions
• Additional potential dilution from 6 million warrants at $1.10 exercise price

Insights

Financial Analyst

Veea secures $6M cash through dilutive offering, converting $3.2M debt to equity, with proceeds targeting inventory and customer support.

Veea has announced a $9.2 million public offering that combines $6 million in new cash with a $3.2 million debt-to-equity conversion. The structure involves selling 6 million shares with accompanying warrants at $1.00 per unit, while simultaneously allowing NLabs (an affiliate controlled by Veea's CEO) to exchange $3.2 million in outstanding notes for 3.2 million shares and warrants.

This financing appears strategically defensive rather than growth-oriented. The company's decision to allocate proceeds toward inventory and customer support infrastructure suggests they're addressing operational constraints rather than pursuing aggressive expansion. The additional working capital will help stabilize operations but comes at a significant dilutive cost to existing shareholders.

The warrant structure ($1.10 exercise price, 5-year term) indicates the company needed to offer substantial incentives to attract capital. If all warrants were eventually exercised, it would bring in an additional $10.1 million but would further dilute shareholders. The debt conversion component is a positive aspect as it reduces leverage and strengthens the balance sheet by eliminating interest expenses associated with those notes.

The use of a "reasonable best efforts" approach rather than a firm commitment underwriting suggests limited institutional appetite for this offering, as does the engagement of a single placement agent. The pricing at $1.00 per unit likely represents a discount to recent trading, reinforcing the challenging capital-raising environment Veea currently faces.

Includes $6.0 million in cash gross proceeds to the Company

NEW YORK, Aug. 13, 2025 (GLOBE NEWSWIRE) -- Veea Inc. (NASDAQ: VEEA) (“Veea” or the “Company”), a leader in intelligent edge infrastructure, today announced the pricing of its "reasonable best efforts" public offering for the purchase and sale of 6,000,000 shares of common stock and warrants to purchase up to 6,000,000 shares of common stock at a combined offering price of $1.00 per share and accompanying warrant (the “Offering”). The Company expects to receive aggregate cash gross proceeds of approximately $6,000,000 million, before deducting placement agent fees and other offering expenses, and assuming no exercise of the warrants. The warrants will have an exercise price of $1.10 per share, will be exercisable immediately and will expire five years from the issuance date.

In connection with the offering, NLabs Inc., a Delaware corporation (“NLabs”) an existing stockholder and an affiliate of the Company and the Company’s Chief Executive Officer, will exchange and extinguish certain of the Company’s outstanding non-convertible promissory notes in the aggregate principal amount, plus accrued interest, of $3,239,096, in exchange for 3,239,096 shares of common stock and accompanying warrants at the combined public offering price per share and accompanying warrant.

The closing of the Offering is expected to occur on or about August 14, 2025, subject to the satisfaction of customary closing conditions. The Company intends to use the net proceeds from this Offering for investments in inventory and the Company’s customer support infrastructure and for working capital and general corporate purposes.

A.G.P./Alliance Global Partners is acting as the sole placement agent in connection with the Offering.

The securities described above are being offered pursuant to a registration statement on Form S-1, as amended (File No. 333-288878) previously filed with the Securities and Exchange Commission ("SEC") on July 23, 2025, which was declared effective on August 12, 2025. This Offering is being made only by means of a prospectus forming part of the effective registration statement. A preliminary prospectus relating to the Offering has been filed with the SEC. An electronic copy of the final prospectus relating to the Offering may be obtained, when available, on the SEC's website located at http://www.sec.gov and may also be obtained from A.G.P./Alliance Global Partners, 590 Madison Avenue, 28th Floor, New York, NY 10022, or by telephone at (212) 624-2060, or by email at prospectus@allianceg.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

About Veea Inc.

Veea Inc. (NASDAQ: VEEA) formed in 2014 and headquartered in New York City, is a leader in smart edge connectivity, computing and Edge AI for enterprise and public infrastructure. Its flagship VeeaHub™ STAX platform delivers intelligent edge networking, security, and scalable NVMe storage for the future of digital business and connected communities. Its VeeaONE™ platform enables unified edge computing, multiaccess multiprotocol communications, edge storage, edge AI with AI-driven cybersecurity in multi-tenant fully integrated all-in-one VeeaHub® products. Similar to cloud-management of smartphones and similar user devices, VeeaHub products are cloud- and locally-managed with equivalent capabilities on VeeaCloud™. Applications and services delivered through VeeaHub devices benefit from cybersecure connections with Zero Trust Network Access (ZTNA), optionally, with a highly simplified, plug and play, 5G-based SecureConnect™ offering. Veea has received numerous recognitions by Gartner Group, Market Reports World’s and IoT Evolution for Edge Computing and Edge AI since 2021.

For more information about Veea and its product offerings, visit veea.com and follow us on LinkedIn.

For media inquiries, please contact:
The Equity Group
Devin Sullivan
Managing Director
dsullivan@equityny.com 

Conor Rodriguez
Associate
crodriguez@equityny.com

Forward Looking Statements

Certain statements in this press release constitute “forward-looking statements.” Such forward-looking statements are often identified by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “forecasted,” “projected,” “potential,” “seem,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or otherwise indicate statements that are not of historical matters, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements include, among other things, statements relating to the satisfaction of customary closing conditions related to the Offering, the timing of the anticipated closing of the Offering and the intended use of proceeds from the Offering. These forward-looking statements and factors that may cause actual results to differ materially from current expectations include, but are not limited to: the ability of Veea to grow and manage growth profitably, maintain key relationships and retain its management and key employees; risks related to the uncertainty of the projected financial information with respect to Veea; risks related to the price of Veea’s securities, including volatility resulting from changes in the competitive and highly regulated industries in which Veea plans to operate, variations in performance across competitors, changes in laws and regulations affecting Veea’s business and changes in the combined capital structure; and risks related to the ability to implement business plans, forecasts, and other expectations and identify and realize additional opportunities. The foregoing list of factors is not exhaustive.

All statements other than statements of historical facts included in this press release regarding the Company's strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Important factors that could cause the Company's actual results and financial condition to differ materially from those indicated in the forward-looking statements. Such forward-looking statements include, but are not limited to, risks and uncertainties including those regarding: the Company's business strategies, and the risk and uncertainties described in "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Cautionary Note on Forward-Looking Statements" and the additional risk described in Veea’s Form 10-K for the year ended December 31, 2024 and any subsequent filings which Veea makes with the U.S. Securities and Exchange Commission. You should not rely upon forward-looking statements as predictions of future events. The forward-looking statements made in the press release relate only to events or information as of the date on which the statements are made in the press release. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events except as required by law. You should read this press release with the understanding that our actual future results may be materially different from what we expect.

Stockholders and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which only speak as of the date made, are not a guarantee of future performance and are subject to a number of uncertainties, risks, assumptions and other factors, many of which are outside the control of Veea. Veea expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the expectations of Veea with respect thereto or any change in events, conditions or circumstances on which any statement is based.

FAQ

What is the size and price of Veea's (VEEA) public offering in August 2025?

Veea is offering 6 million shares and warrants at $1.00 per share and warrant combination, expecting to raise $6.0 million in cash gross proceeds.

How will Veea (VEEA) use the proceeds from its August 2025 offering?

Veea will use the proceeds for investments in inventory, customer support infrastructure, working capital, and general corporate purposes.

What are the terms of the warrants in Veea's (VEEA) August 2025 offering?

The warrants have an exercise price of $1.10 per share, are immediately exercisable, and will expire in 5 years from issuance.

How much debt is being converted in Veea's (VEEA) offering?

NLabs is converting $3.239 million in promissory notes into 3,239,096 shares and accompanying warrants at the offering price.

When will Veea's (VEEA) public offering close?

The offering is expected to close on or about August 14, 2025, subject to customary closing conditions.