Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 185

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 8
Chunk 185
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 under the Ayrton Convertible Note Financing or raise additional capital
on reasonable terms or at all, that our common stock will trade above $8.00, permitting one of the Backstop Parties to sell shares under
the Backstop Agreement, that our common stock will trade above $10.34, permitting the other Backstop Parties to sell shares under the
Backstop Agreement, that the Backstop Parties will sell any shares of our common stock held by them or elect to terminate the Backstop
Agreement in respect of those shares, or that our vendors will agree to further deferrals of payments due to them. Although the Common
Stock Purchase Agreement provides that we have the right, but not the obligation to require White Lion to purchase, from time to time,
up to $75.0 million in aggregate gross purchase price of Equity Line Shares, we are not required or permitted to issue any shares of
our common stock under the Common Stock Purchase Agreement if such sale would result in White Lion owning more than 9.99% of our outstanding
shares of common stock.

Effective
October 4, 2023, the Company and White Lion entered into the first amendment of the Common Stock Purchase Agreement (the “Amendment”).
The Amendment is intended to afford the Company greater flexibility and provide the Company an additional alternative to issue a fixed
price “Purchase Notice” under the Common Stock Purchase Agreement at $7.00 per share if the market price for the Common Stock
exceeds $9.00 per share. In addition, on November 2, 2023, White Lion purchased 41,677 shares of the Company’s common stock under
the Common Stock Purchase Agreement for which the Company received approximately $64 thousand. This facility is now deemed terminated.

As
an emerging growth company, we are dependent on outside capital in order to advance our research and development programs, operate our
business, and meet our future obligations as they come due. Our current operating plan indicates that we will incur losses from operations
and generate negative cash flows from operating activities, given anticipated expenditures related to research and development activities
we lack revenue generating ability at this point in our lifecycle. These events and conditions raise substantial doubt about our ability
to continue as a going concern.

We
will seek additional funding through private equity financings, debt financings, collaborations, strategic alliances, marketing, distribution,
or licensing arrangements. There is no assurance that we will be successful in obtaining additional financing on terms acceptable to
us, if at