Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2286

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1A
Chunk 2286
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 securities issued by Aesther and Legacy Ocean in 2022 that were not registered under the Securities
Act. No underwriters were involved in the sales and the certificates representing the securities sold and issued contain legends restricting
transfer of the securities without registration under the Securities Act or an applicable exemption from registration.

Issuances
of Capital Stock

In
connection with the Closing of the Business Combination, on February 14, 2023, Aesther issued to Sponsor 1,365,000 shares of the Company’s
Class A common stock in connection with Sponsor obtaining two (2) three-month extensions beyond the September 16, 2022 deadline to complete
an initial business combination. Such shares were reclassified as Ocean Biomedical common stock in connection with the Business Combination
pursuant to the Amended Certificate. These securities were issued pursuant to Section 4(a)(2) of the Securities Act.

Issuance
of Warrants

On
February 22, 2022, Legacy Ocean entered into a Loan Agreement (the “Second Street Loan”) with Second Street Capital, LLC
(“Second Street Capital”), where Legacy Ocean borrowed $0.6 million, which was used to pay a $15,000 loan fee and
certain accrued expenses of Legacy Ocean. The Second Street Loan accrues interest at the rate of 15% per annum, with principal and
interest due at maturity. Legacy Ocean was required to repay the Second Street Loan on the earlier of (i) 5 business days after
Legacy Ocean’s next financing or (ii) May 23, 2022. Legacy Ocean issued to Second Street Capital, LLC a warrant to purchase
312,500 shares of Legacy Ocean’s common stock, with an exercise price of $11.00 per share, exercisable until February 22,
2026. For a period of 180 days from the closing of Legacy Ocean’s next financing, Second Street Capital, LLC has the right to
put the warrants to Legacy Ocean in exchange for a payment of $0.3 million. On April 22, 2022, the February 2022 Second Street Loan
Agreement was amended whereas the maturity date was extended from May 23, 2022 to November 18, 2022. The Company recognized a loss
and recorded the liability of $0.3 million for the put option in its consolidated financial statements for the fiscal year ended
December 31, 2022. There was no impact in 202