Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 1654

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 11
Chunk 1654
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for the last 30 consecutive business days, the Company no longer meets this requirement. Consequently, a deficiency exists with regard
to the Rule. However, the Rules also provide the Company a 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.

    F-27

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 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