Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 154

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 154
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7. Senior Secured Convertible Notes

Senior Secured Convertible Notes

In May 2023, the Company entered
into a Securities Purchase Agreement (the “SPA”) with an accredited investor (the “Investor”) for the sale of
up to three Senior Secured Convertible Notes (each, a “Note” and collectively, the “Notes”), which Notes are convertible
into shares of the Company’s common stock, in an aggregate principal amount of up to $27.0 million, in a private placement (the
“Ayrton Convertible Note Financing”). In May 2023, the Company consummated the closing for the sale of (i) the initial note
in the principal amount of $7.6 million (the “2023 Convertible Note”) and (ii) a warrant to initially acquire up to 552,141
additional shares of the Company’s common stock with an initial exercise price of $11.50 per share of common stock, subject to adjustment,
exercisable immediately and expiring five years from the date of issuance (the “SPA Warrant”). Each Note will be sold at an
original issue discount of 8%. Future issuances of Notes (“Additional Closings”) are subject to satisfaction of certain conditions.
At the closing of the first Additional Closing, $8.6 million in principal amount of Notes will be issued (the “First Additional
Closing Date”) and $10.8 million in principal amount of Notes will be issued at the closing of the second Additional Closing. So
long as any Notes remain outstanding, the Company and each of its subsidiaries are prohibited from effecting or entering into an agreement
to affect any subsequent placement involving a Variable Rate Transaction, as defined within the SPA, other than pursuant to the White
Lion Common Stock Purchase Agreement.

The interest rate applicable
to each Note is, as of any date of determination, the lesser of (i) 8% per annum and (ii) the greater of (x) 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) 2% per annum. Each Note
will mature on the first anniversary of its issuance.

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All or any portion of the principal
amount of each Note, plus accrued and