Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 187

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 8
Chunk 187
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, 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 (the “Prepayment”).

Subsequent
to Closing, the Prepayment amount was equal to $51.6 million, consisting of $37.3 million for the Recycled Shares and $14.3 million for
the Polar Subscription shares. As the $14.3 million was a netted transaction between us and Polar, only $37.3 million was paid out of
the funds we received from AHAC’s trust account. This net impact from the payment outflow to Backstop Parties for the Backstop
Agreement of $51.6 million and the proceeds inflow from the issuance of common stock pursuant to the Backstop Agreement and Polar Subscription
of $14.3 million are reported in our condensed consolidated statement of cash flows.

At
any time prior to the Maturity Date, the Backstop Parties may elect an optional early termination to sell