Veea Inc. (NASDAQ:VEEA) saw its shares fall by 2.4% after the company announced plans to raise capital through a new offering of common stock and warrants, using a “reasonable best efforts” approach.
The edge computing and smart network technology provider intends to issue a to-be-determined number of common shares, each paired with warrants allowing investors to purchase additional shares in the future. In addition, the company is offering pre-funded warrants to certain investors who would otherwise exceed a 4.99% ownership threshold post-offering.
According to a recent filing, the common warrants will be valid for five years from the date of issuance. The pre-funded warrants will carry an exercise price of $0.001 per share and will be exercisable immediately upon issuance. All securities are to be issued in a single closing under a securities purchase agreement.
Veea has retained an unnamed placement agent to assist with the offering. The company clarified that the investor warrants will not have an active public trading market and it does not anticipate one emerging.
The offering appears to support Veea’s broader efforts to bolster its capital reserves. Some of the newly offered securities may be exchanged with current shareholders in return for tendered demand notes. However, the company did not disclose the total number of shares or pricing details in the announcement.
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