Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 1430

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 9C
Chunk 1430
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 ●
    at
    any time after the warrants become exercisable;

    ●
    upon
    not less than 30 days’ prior written notice of redemption to each warrant holder;

    ●
    if,
    and only if, the reported last sale price of the shares of common stock equals or exceeds $18.00 per share (as adjusted for stock
    splits, stock dividends, reorganizations and recapitalizations), for any 20 trading days within a 30-trading-day period commencing
    after the warrants become exercisable and ending on the third business day prior to the notice of redemption to warrant holders;
    and

    ●
    if,
    and only if, there is a current registration statement in effect with respect to the shares of common stock underlying such warrants.

The
right to exercise will be forfeited unless the IPO Warrants are exercised prior to the date specified in the notice of redemption. On
and after the redemption date, a record holder of an IPO Warrant will have no further rights except to receive the redemption price for
such holder’s warrant upon surrender of such warrant. If the Company calls the IPO Warrants for redemption as described above,
its management will have the option to require all holders that wish to exercise warrants to do so on a “cashless basis.”
In such event, each holder would pay the exercise price by surrendering the warrants for that number of shares of the Company’s
common stock equal to the quotient obtained by dividing (x) the product of the number of shares of common stock underlying the warrants,
multiplied by the difference between the exercise price of the warrants and the “fair market value” (defined below) by (y)
the fair market value. The “fair market value” for this purpose shall mean the average reported last sale price of the shares
of common stock for the five trading days ending on the third trading day prior to the date on which the notice of redemption is sent
to the holders of warrants.

For
accounting purposes, the Company accounts for the IPO Warrants (i) in accordance with the guidance contained in ASC 480-10-25-8 and ASC
815-40 and (ii) classified as an equity instrument. The fair values of the IPO Warrants were accounted for as deemed dividends. Since
the entries to recognize the fair value of the IPO Warrants offset within additional paid-in capital, there is no inherent impact to
the consolidated financial statements.

Additional
Share Consideration

In