Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 375

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 3
Chunk 375
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purchase price of Equity Line Shares, subject to certain limitations and conditions set forth in the Common Stock Purchase Agreement.

144

We
are obligated under the Common Stock Purchase Agreement and the White Lion RRA to file a registration statement with the SEC to register
under the Securities Act the common stock subject to the Common Stock Purchase Agreement, for the resale by White Lion of shares of the
Company’s common stock that the Company may issue to White Lion under the Common Stock Purchase Agreement.

Subject
to the satisfaction of certain customary conditions, our right to sell the Equity Line Shares to White Lion will commence on the effective
date of the registration statement and extend for a period of two years. During such term, subject to the terms and conditions of the
Common Stock Purchase Agreement, we may notify White Lion when it exercises its right to sell Equity Line Shares (the effective date
of such notice, a “Notice Date”). The number of Equity Line Shares sold pursuant to any such notice may not exceed (i) $2.0
million, divided by the closing price of the Company’s common stock on Nasdaq preceding the Notice Date and (ii) a number of shares
of common stock equal to the average daily trading volume multiplied by 67%.

At
any given time of any sale by us to White Lion, we may not sell, and White Lion may not purchase, Equity Line Shares of the Company’s
common stock that would result in White Lion owning more than the 9.99% Beneficial Ownership Cap upon such issuance.

The
purchase price to be paid by White Lion for any such shares will equal 93% of the lowest daily volume-weighted average price of the Company’s
common stock during a period of two consecutive trading days following the applicable Notice Date. However, if during such two-trading
day period the trading price of the Company’s common stock falls below a price (the “Threshold Price”) equal to 90%
of the opening trading price of the common stock on Nasdaq on the Notice Date, then the number of shares to be purchased by White Lion
pursuant to such notice will be reduced proportionately based on the portion of the two-trading day period that has elapsed, and the
purchase price will equal 95% of the Threshold Price.

In
consideration for the commitments of White Lion to purchase the Equity Line Shares under the Common Stock Purchase Agreement, the Common
Stock Purchase Agreement required us to issue to White Lion shares of Common Stock having a value of $0.