Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 1069

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 7
Chunk 1069
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emptive” or “participation” rights).

147

We
are required to obtain stockholder approval authorizing the issuance of our common stock under the Notes and the Ayrton Warrant in compliance
with the rules and regulations of the Nasdaq Capital Market (“Nasdaq”) (without regard to any limitations on conversion or
exercise set forth in the Notes or the Ayrton Warrant, respectively), including, shares of our Common Stock to be issued in connection
with any Additional Closing. Unless we obtain the approval of our stockholders as required by Nasdaq, we will be prohibited from issuing
any shares of Common Stock upon conversion of the Notes or otherwise pursuant to the terms of the Notes or the Ayrton Warrant, if the
issuance of such shares of Common Stock would exceed 19.99% of our outstanding shares of Common Stock as of the date of the SPA or otherwise
exceed the aggregate number of shares of Common Stock which we may issue without breaching our obligations under the rules and regulations
of Nasdaq.

The
interest rate applicable to each Note is, as of any date of determination, the lesser of (I) eight percent (8%) per annum and (II) the
greater of (x) five percent (5%) per annum and (y) the sum of (A) the “secured overnight financing rate,” which from time
to time is published in the “Money Rates” column of The Wall Street Journal (Eastern Edition, New York Metro), in effect
as of such date of determination and (B) two percent (2%) per annum; provided, further, that each of the forgoing rates shall be subject
to adjustment from time to time in accordance with the SPA. Each Note will mature on the first anniversary of its issuance (the “Maturity
Date”). Additionally, each Note is required to be senior to all of our other indebtedness, other than certain permitted indebtedness.
The Notes will be secured by all of our existing and future assets (including those of our significant subsidiaries). Upon the occurrence
of certain events, the Notes will be payable in monthly installments. A noteholder may, at its election, defer the payment of all or
any portion of the installment amount due on any installment date to another installment payment date.

All
or any portion of the principal amount of each Note, plus accrued and unpaid interest, any late charges thereon and any other unpaid
amounts (the “Conversion Amount”), is convertible