Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 119

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 8
Chunk 119
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“2024 Convertible Notes”) in conjunction with the 2023 Convertible Note. The first tranche of $1.1 million was funded to
various vendors on behalf of the Company to address costs of the Company in preparing its 2023 financial statements and subsequent quarterly
reporting requirements, among other things. The balance of the funds shall be released by the investor upon the Company reaching certain
milestones over the next several months.

All
prior defaults under the existing transaction documents have been deemed cured, and there was a late filing carveout until August 15,
2024. The current Notes have had an extension of the maturity date until December 15, 2024 and installment payments have been waived
until the earlier of the date on which the Company’s 2023 Form 10-K is filed and September 1, 2024, with subsequent installments
continuing to be due on the first of each month thereafter. The investor has agreed to extend the maturity to March 2025. No payments
have been made.

The
Company shall issue to the investor 3,844,466 restricted shares of its common stock in settlement of all past defaults and penalty shares
to be issued in conjunction therewith, subject to a leak out of 15% of daily trading value unless the sales price of such shares is above
$5.00 per share. The Company is also issuing the investor 1,332,806 warrants which shall be exchangeable on a one for one basis into
restricted shares of common stock on or after August 1, 2024. All securities are being issued in private placement transactions exempt
from registration under Section 4(a)(2) under the Securities Exchange Act of 1934 as amended.

The
principal amount of the new note issued in exchange for the Existing Notes is $9.7 million, after giving effect to the principal amount
of the Existing Notes, the Event of Default Interest to date and Redemption Premium. At July 15, 2024, the Existing Notes were valued
at $7.1 million, consisting of the fair value of the Existing Notes of $6.3 million, plus accrued and unpaid interest of $0.8 million.
The new $9.7 million notes were valued at $6.8 million, resulting in a gain on exchange of notes of $0.3 million. Similarly, the Company
valued the SPA Warrants issued in 2023 at $1.6 million and the