Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 3581

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1A
Chunk 3581
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 file
and maintain a current and effective registration statement relating to our common stock issuable upon exercise of the warrants until
the expiration of the warrants. However, we cannot assure you that it will be able to do so. If we are unable to do so, the potential
“upside” of the holder’s investment in us may be reduced or the warrants may expire worthless.

There
is no guarantee that the warrants will ever be in the money, and they may expire worthless and the terms of warrants may be amended.

The
exercise price for the warrants (other than the Second Street Warrants) is $11.50 per share of common stock. There is no guarantee that
the warrants will ever be in the money prior to their expiration, and as such, the warrants may expire worthless.

The
exercise price for our public warrants is higher than in many similar blank check company offerings in the past, and, accordingly, the
public warrants are more likely to expire worthless.

The
exercise price of our public warrants is higher than is typical with many similar blank check companies in the past. Historically, with
regard to units offered by blank check companies, the exercise price of a public warrant was generally a fraction of the purchase price
of the units in the initial public offering. The exercise price for our public warrants is $11.50 per share, subject to adjustment as
provided therein. As a result, the public warrants are less likely to ever be in the money and more likely to expire worthless.

The
warrants will become exercisable for our common stock, which would increase the number of shares eligible for future resale in the public
market and result in dilution to our stockholders.

Our
private placement warrants are exercisable for 5,411,000 shares of common stock at $11.50 per share and our public warrants are exercisable
for 5,250,000 shares of common stock at $11.50 per share. The Second Street Warrants are exercisable for 511,712 shares of common stock
at an exercise price of $8.06 per share, 102,342 shares of common stock at an exercise price of $7.47 per share and 75,000 shares of
common stock at an exercise price of $10.34. The additional shares of our common stock issued upon exercise of our warrants will result
in dilution to the then existing holders of our common stock and increase the number of shares eligible for resale in the public market.
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