Plum Acqyuisition I in a regulatory filing said its audit committee concluded that the SPAC’s previously-issued unaudited interim financial statements for quarterly reports covering the periods ended March 31, June 30 and Sept. 30, 2023, can no longer be relied upon due to misstatements in debt discount subscription liability, additional paid-in capital and accumulated deficit in the company’s condensed balance sheet for the three periods, and changes in fair value of subscription liability and interest expense – debt discount on the company’s condensed statements of operations.
Plum I said its finances will be restated in its annual report for the year ended Dec. 31, 2023. The restatement does not impact Plum’s cash position or the amount held in trust.
The SPAC’s management has concluded that a material weakness exists in the internal control over financial reporting. Plum management plans to enhance the system of evaluating and implementing the accounting standards, “including enhanced training of the company’s personnel and increased communication among the company’s personnel and third party professionals with whom the company consults regarding the application of complex financial instruments.”
Plum I in December announced a deal with Veea, a 10-year-old company that offers edge-to-cloud computing with its VeeaHub smart computing hub products, which can replace or complement Wi-Fi Access Points (APs), IoT gateways, routers, basic firewalls, network attached storage, and other types of hubs and appliances. The transaction has an enterprise value of approximately $281 million, prior to an anticipated $50 million private financing by Veea.
The transaction consideration will consist of newly-issued Plum securities determined based on a pre-money equity value for Veea’s outstanding equity securities and certain outstanding debt that will be converted into equity at the closing of approximately $194 million, excluding any money raised by Veea in its current financing .
In addition, following the closing, holders of Veea capital stock will have the right to receive up to 4.5 million additional shares of the combined company’s common stock if certain trading price-based milestones are achieved during the 10-year period following the closing. Read more.
