Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 883

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 6
Chunk 883
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 principles
(“U.S. GAAP”). Under this method of accounting, AHAC, who is the legal acquirer, is treated as the “acquired”
company for financial reporting purposes and Legacy Ocean is treated as the accounting acquirer.

The
Business Combination is accounted for as the equivalent of a capital transaction in which Legacy Ocean has issued stock for the net assets
of AHAC. The net assets of AHAC are stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior
to the Closing of the Business Combination are Legacy Ocean and operations post-Closing of the Business Combination are the Company,
on a consolidated basis with Legacy Ocean.

141

Backstop
Agreement

On
February 12, 2023, AHAC, Legacy Ocean and Vellar Opportunity Fund SPV LLC – Series 3 (“Vellar”) entered into an amended
and restated OTC Equity Prepaid Forward Transaction (the “Backstop Agreement”), which amended and restated in their entirety
earlier OTC Equity Prepaid Forward Transactions entered into between the parties on August 31, 2022 and February 10, 2023. On February
13, 2023, AHAC, Vellar and Legacy Ocean entered into separate assignment and novation agreements (the “Assignment Agreements”)
with Meteora Special Opportunity Fund I, LP, Meteora Select 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