Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 543

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 4
Chunk 543
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 or above $20.00 per share for any 30 trading days during a 45 consecutive
trading day-period, (ii) the Backstop Shares are freely tradable by the Backstop Parties without restriction and (iii) the aggregate
trading volume in respect of such shares during the same 30-day period is equal to at least three times the number of Backstop Shares
(less any Terminated Shares).

On
May 23, 2023 the Company received an Equity Prepaid Forward Transaction - Valuation Date Notice (“Notice”) from Vellar stating
that due to the Company’s alleged failure to timely register the shares held by Vellar, Vellar had the right to terminate the Backstop
Agreement as to their portion of the shares and Vellar claimed that it is entitled to receive Maturity Consideration (as defined in the
Backstop Agreement) equal to $6.7 million, which at the Company’s discretion may be paid in cash or by offset to the shares currently
held by Vellar. Management takes issue with multiple aspects of the Notice including, but not limited to, Vellar’s right to terminate
their portion of the Backstop Agreement and their asserted Maturity Consideration calculation. As such, the Company is consulting with
advisors and other parties and is considering the potential resources and remedies it may elect to pursue and intends to assert its rights
should this matter not be resolved. After a review of all applicable documents related to the Backstop Agreement, the Company believes
its position with respect to the terms of the Backstop Agreement and intent of the parties is supported by the Backstop Agreement and
facts and circumstances under which it was entered into. Further, given the early stage of this matter and the uncertainty inherent in
litigation and investigations, the Company does not currently believe it is (i) probable to incur losses or (ii) possible to develop
estimates of reasonably possible losses (or a range of possible losses) for this matter.

On
October 2, 2023, the Company entered into a Side Letter Agreement (the “Side Letter”) with Polar. The Side Letter amended
certain terms of the Polar Agreement, as discussed in Note 3, Business Combination and Backstop Agreement. The Side Letter amended the
definitions of “Seller VWAP Trigger Event” and “Reset Price” as used in the Backstop Agreement as it relates
to Polar and the Polar Agreement. Per the amended definitions, the (i) “Seller VWAP