Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 223

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 2
Chunk 223
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will require additional capital as we seek regulatory approval of our product candidates and if we choose to pursue in-licenses or acquisitions
of other product candidates. If we receive regulatory approval for our product candidates, we expect to incur significant commercialization
expenses related to product manufacturing, sales, marketing and distribution, depending on where we choose to commercialize. Because
of the numerous risks and uncertainties associated with research, development and commercialization of biologic product candidates, we
are unable to estimate the exact amount of our working capital needs.

Backstop
Agreement

As
discussed above, prior to Closing, on February 12, 2023, AHAC, Legacy Ocean and Vellar entered into an amended and restated OTC Equity
Prepaid Forward Transaction, referred to herein as the Backstop Agreement. Concurrently, on February 13, 2023, AHAC, Vellar and Legacy
Ocean entered into separate assignment and novation agreements (as amended as it relates to Polar on October 2, 2023), whereby Vellar
assigned its rights and obligations to a portion of the shares of Class A common stock subject to the Backstop Agreement to Meteora and
Polar. Further, the Backstop Agreement granted the Backstop Parties the right to purchase Additional Shares from us of up to an amount
equal to the difference between the number of Recycled Shares and the maximum number of shares of 8,000,000.

On
February 14, 2023, pursuant to the Backstop Agreement, (i) the Backstop Parties purchased 3,535,466 Recycles Shares of AHAC’s Class
A common stock for $10.56 per share and (ii) pursuant to Polar’s exercise of its right to purchase Additional Shares, AHAC, Legacy
Ocean and Polar entered into a subscription agreement pursuant to which Polar purchased 1,350,000 newly issued shares of our common stock
at a per share purchase price of approximately $10.56 (the “Polar Subscription”). Under the Backstop Agreement, the Additional
Shares are subject to the same terms as the Recycled Shares, including with regard to repayment and repurchase.

We
agreed to purchase those shares from the Backstop Parties on a forward basis upon the “Maturity Date” (as amended, the third
anniversary of the closing of the Business Combination, subject to certain acceleration provisions). The purchase price payable by us
includes a prepayment in the amount of the redemption price per share (