Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 368

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 3
Chunk 368
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 Trading Opportunities Master, LP and Meteora Capital Partners, LP (collectively
“Meteora”), and Polar Multi-Strategy Master Fund (“Polar” and, together with Vellar and Meteora, the “Backstop
Parties”), pursuant to which Vellar assigned to each of Meteora and Polar its rights and obligations in respect of one-third of
the shares of Class A common stock subject to the Backstop Agreement. Following the Assignment Agreements, the rights and obligations
of each Backstop Party under the Backstop Agreement were and are separate and distinct from the those of the other Backstop Parties,
with each Backstop Party acting independently of the others, without reference to or knowledge of any other Backstop Party’s actions
or inactions.

Pursuant
to the Backstop Agreement, the Backstop Parties intended, but were not obligated, to purchase up to 8,000,000 shares of the AHAC Class
A common stock. The Backstop Parties made these purchases after the expiration of the redemption deadline for holders to redeem shares
in connection with the Business Combination and in brokered transactions in the open market, typically from AHAC stockholders that had
elected to redeem their shares. In connection with these purchases, the Backstop Parties revoked any redemption elections. The Backstop
Parties purchased 3,535,466 shares (the “Recycled Shares”) pursuant to the Backstop Agreement at a price approximately equal
to the redemption price for shares of AHAC Class A common stock of $10.56 per share.

The
Backstop Agreement provided that we pay to the Backstop Parties out of funds held in the trust account, not later than one local business
day following the Closing of the Business Combination, a cash amount equal to the product of the number of shares acquired and the redemption
price of approximately $10.56 (the “Prepayment”). On February 16, 2023, we made the Prepayment of $50.4 million and commissions
and fee payments of $1.2 million for a total amount of $51.6 million.

We
also provided the Backstop Parties with an additional $12.7 million, to compensate them for their purchase of 1,200,000 additional shares
of Class A common stock in the open market (the “Share Consideration Shares”). Under the Backstop Agreement, the Share Consideration
Shares are not subject to the terms applicable to the Recycled Shares, including with regard to repayment