Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 150

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 8
Chunk 150
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 compliance period of 180 calendar days in which to regain compliance. If at
anytime during this compliance period the Company’s MVLS closes at $35 million or more for a minimum of ten consecutive business
days, Nasdaq will provide written confirmation of compliance and this matter will be closed. In the event the Company does not regain
compliance with the Rule prior to the expiration of the compliance period, it will receive written notification that its securities are
subject to delisting and it may be eligible for additional time to regain compliance, or may face delisting.

Virion
Contribution Agreement

On
October 11, 2023, the Company entered into an Amended and Restated Contribution Agreement (the “Contribution Agreement”)
with Virion Therapeutics, LLC (“Virion”) and Poseidon Bio LLC to provide financial, technical and operational assistance
to further the growth and development of Virion’s Intelligent and Adaptable CD8+ T cell-based Immunotherapy (“VIACT”)
platform. Pursuant to the Contribution Agreement, the Company acquired a 50% membership interest in Virion and purchased one membership
unit of Virion for an initial contribution of either a) $4.1 million in cash, or b) 750,000 shares of the Company’s common stock,
250,000 of which were transferred to Virion by Poseidon Bio LLC, with the remaining 500,000 shares issued by the Company on December
1, 2023. The Company elected to fund the initial contribution via the issuance of shares of its common stock. In the case of an initial
contribution in the form of shares of common stock, the Contribution Agreement provides for a post-closing true-up 18 months from the
closing date, whereby the Company would be required to make a true-up contribution. This post-closing true-up amount would be equal to
the difference between liquidation proceeds received by Virion from the sale of the 750,000 shares of common stock received in the initial
contribution and $4.1 million. The post-closing true-up amount is payable, at the Company’s discretion, in the form of additional
shares of the Company’s common stock, or cash. This investment has been reflected at the minimum amount to be contributed as of
the post-closing true-up, or $4.1 million and is reflected in non-current assets on the Company’s condensed consolidated balance
sheets as Investment in Virion. The Company initially recorded a liability of $