Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 92

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 1
Chunk 92
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) a common stock purchase agreement, dated September 7, 2022,
and as amended on October 4, 2023, (the “Common Stock Purchase Agreement”) and (ii) a registration rights agreement, dated
September 7, 2022 (the “White Lion Registration Rights Agreement”), that AHAC entered into with White Lion Capital LLC (“White
Lion”). Pursuant to the Common Stock Purchase Agreement, we have the right from time to time at its option to sell to White Lion
up to $75.0 million in aggregate gross purchase price of newly issued shares (“Equity Line Shares”) of our common stock,
subject to certain limitations and conditions set forth in the Common Stock Purchase Agreement. These limitations stipulate, among other
things, that we may not sell, and White Lion may not purchase, shares of our common stock that would result in White Lion owning more
than 9.99% of our outstanding common stock. The Common Stock Purchase Agreement expires after two years.

In
consideration for the commitments of White Lion to purchase Equity Line Shares, the Common Stock Purchase Agreement included issuing
initial commitment shares with a value of $0.8 million based upon the closing sale price two days prior to the filing of the initial
registration statement.

In
April 2023, the Common Stock Purchase Agreement was amended to fix the number of initial commitment shares at 75,000 shares to White
Lion, which had a fair value of $0.5 million upon issuance. The $0.5 million in commitment costs were recorded in other income (expense)
in our condensed consolidated statements of operations.

Effective
October 4, 2023, the Company and White Lion entered into the first amendment of the Common Stock Purchase Agreement (the “Amendment”).
The Amendment is intended to afford the Company greater flexibility and provide the Company an additional alternative to issue a fixed
price “Purchase Notice” under the Common Stock Purchase Agreement [at $7.00 per share if the market price for the Common
Stock exceeds $9.00 per share]. In addition, on November 2, 2023, White Lion purchased 41,677 shares of the Company’s common stock
under the Common Stock Purchase Agreement for which the Company received approximately $64 thousand. This facility is now deemed terminated.

Any
future proceeds earned from the sale of shares will be used to support funding of our ongoing operations and working capital.

Other
Commitments

License
Fees

Our
contract