Veea Inc.

Veea Inc. executed a series of related financial transactions primarily with entities affiliated with its CEO, Allen Salmasi, to address significant Nasdaq listing deficiencies. The core action involved converting over $21 million in liabilities—comprising promissory notes and unpaid rent—into newly created Series A Convertible Preferred Stock. This conversion was strategically aimed at boosting the company's stockholders' equity to at least $5 million, a key step toward complying with the financial requirements of the Nasdaq Capital Market, to which the company is transferring its listing. The transfer provides an extended grace period until September 30, 2026, to regain compliance with the minimum $1.00 bid price requirement. As a significant inducement for the debt conversion by NLabs, the company issued a substantial warrant, granting the right to purchase over 33.5 million shares of common stock, which represents a potential future equity dilution. The Preferred Stock itself carries voting rights on an as-converted basis and is convertible into common stock at a price of $0.503 per share, creating another avenue for potential common stock dilution. These actions highlight the company's immediate focus on maintaining its Nasdaq listing through financial restructuring with related parties, rather than through operational performance or external financing.