VEEA INC. 8-K

What Happened
Veea Inc. (through its subsidiary VeeaSystems Inc.) announced on February 17, 2026 that it entered into a secured Loan Agreement with Pasadena Private Lending, Inc. for up to $10,550,000. The company drew an initial $5,500,000 on the closing date, evidenced by a promissory note, with a five‑year maturity. The loan bears interest at the prime rate (floor 5.75%) plus a margin of 4.50% (subject to adjustment based on a cash collateral account). Veea Inc. and the CEO (Allen Salmasi) and his spouse provided guaranties, and the loan is secured by first‑priority liens on the borrower’s and certain subsidiaries’ equity and substantially all personal property.

Key Details

• Initial loan: $5,500,000 drawn on Feb 17, 2026; facility capacity up to $10,550,000 (accordion up to additional $5,000,000 subject to conditions).
• Interest & payments: prime + 4.50% (floor 5.75%); interest payable monthly; principal installments of $58,000/month beginning Mar 17, 2027; remaining balance due at 5‑year maturity.
• Security & guaranties: Parent guaranty (Veea Inc.), personal guaranty by CEO Allen Salmasi and spouse, pledges of 100% equity of borrower and subsidiaries, and security interests in substantially all borrower personal property.
• Covenants & reserves: required cash collateral reserve of at least the greater of $550,000 or 10% of outstanding loans until debt service coverage reaches 3.0x; quarterly tests of leverage, liquidity and debt‑service coverage; customary events of default and lender remedies.

Why It Matters
This is a material financing arrangement that provides near‑term working capital and flexibility (initial $5.5M available immediately) but creates secured debt with first‑priority claims on key assets and equity of subsidiaries. The guaranties (including by the parent and the CEO) and financial covenants may limit corporate flexibility and, if covenants are breached, could allow the lender to accelerate the loan and foreclose on collateral—outcomes investors should monitor. The floating interest rate with a floor means borrowing costs will move with market rates but will not fall below the stated floor.