Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 925

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 6
Chunk 925
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 certain individuals (the “First Extension Lenders”), pursuant to which the First Extension Lenders loaned $1.1 million
to the Sponsor (the “First Sponsor Loan”) and the Sponsor loaned $1.1 million to us (the “First SPAC Loan”).
Amounts loaned from the First Extension Lenders to the Sponsor accrue interest at 8% per annum and amounts loaned from the Sponsor to
us do not accrue interest. The Sponsor Extension Loan was paid down at Closing of the Business Combination to $0.5 million. The outstanding
balance of the Sponsor Extension Loan was paid in full from the proceeds of the initial draw under the Ayrton Convertible Note Financing.

163

On
December 13, 2022, we entered into a Loan and Transfer Agreement (the “Second Extension Loan Agreement”) with the Sponsor
and NPIC Limited (the “Second Extension Lender” and, together with the First Extension Lenders, the “Lenders”),
pursuant to which the Second Extension Lender loaned $1.1 million to the Sponsor (the “Second Sponsor Loan” and, together
with the First Sponsor Loan, the “Sponsor Loans”) and the Sponsor loaned $1.1 million to us (the “Second SPAC Loan”
and together with the First SPAC Loan, the “SPAC Loans”). Amounts loaned from the Second Extension Lender to the Sponsor
accrue interest at 8% per annum and amounts loaned from the Sponsor to us do not accrue interest.

The
total amounts advanced by Lenders to the Sponsor in connection with the Sponsor Loans (the “Funded Amounts”) were required
to be repaid, together with all accrued and unpaid interest thereon, within five days of the Closing, at the option of the Lenders, in
either (a) cash; or (b) shares of Class A common stock held by the Sponsor which are deemed to have a value of $10 per share for such
repayment right. As additional consideration for the Lenders making the Sponsor Loans available to Sponsor, Sponsor agreed to transfer
between 1 and 2.5 Shares of Class B common stock to Lenders for each $10 multiple of the Funded Amounts, which included the registration
rights previously provided by the Company to the Sponsor. While the SPAC Loans do not have a stated interest rate and do not accrue interest,
the SPAC Loans require the issuance of