Plum Acquisition Corp. I (NASDAQ:PLMI), a special purpose acquisition company, announced on Thursday significant amendments to its Business Combination Agreement with Veea Inc., a technology firm. The amendments include a new termination clause and mutual release of potential claims, as well as expectations for additional closing conditions and financing.
The amendment, dated September 11, 2024, introduces an automatic termination of the agreement if the business combination is not closed by September 16, 2024. It also includes a mutual release and waiver of potential claims up to the date of the amendment.
A non-binding term sheet outlines further expected conditions for the closing of the deal. These include the post-Closing Company assuming certain deferred liabilities in exchange for Sponsor Earnout Shares, indemnification for all other accrued liabilities, and equitization of certain notes at $5 per share. Additionally, the parties plan to raise at least $4.0 million in financing, with a portion available at or shortly after closing and the remainder within 30 days.
Concurrently, Plum Acquisition Corp. I also amended promissory notes with several note holders, including Michael Dinsdale, Ursula Burns, Kanishka Roy, and Plum Partners, LLC. Upon the business combination's completion, the outstanding balances will convert into Class A Common Stock at $5 per share, except for a portion of the Plum Partners Promissory Note which will convert above $250,000.
Furthermore, Helder Antunes has been elected to the Company’s board of directors, effective upon the business combination's completion. Antunes brings over 30 years of experience in technology and innovation, having served in various executive positions, including at Cisco (NASDAQ:CSCO) and as CEO of Crowdkeep.
The pro forma financial information of the company as of June 30, 2024, and for the year ended December 31, 2023, and the six months ended June 30, 2024, was also provided.
These developments follow Plum Acquisition Corp. I's previous disclosures and are detailed in the amendments filed with the SEC. The information in this article is based on a press release statement.
In other recent news, Plum Acquisition Corp. I has been served a delinquency notice from The Nasdaq Stock Market due to its failure to file a quarterly report for the period ending June 30, 2024.
This adds to the existing reasons for potential delisting, as Plum Acquisition Corp. I had previously not met the requirement to complete a business combination within 36 months following its IPO. The Nasdaq Listing Qualifications Department's warning implies that the Nasdaq Hearings Panel will consider this new deficiency in their forthcoming decision on the company's continued listing on The Nasdaq Capital Market.
Despite the warning, Plum Acquisition Corp. I's securities will continue to trade on the market while the issue remains unresolved. The company intends to present its viewpoint on the matter to the Panel promptly, though it remains uncertain whether the company's securities will retain their listing status on The Nasdaq Capital Market.
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