Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 192

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 8
Chunk 192
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 calendar month (each, a “Current Calendar Month”) (x)
the available cash on the last calendar day in such Current Calendar Month shall be greater than or equal to the available cash on the
last calendar day of the month prior to such Current Calendar Month less $1.5 million.

Short-Term
Loans

Refer
to Note 6, Short-Term Loans, in Part I, Item 1. “Financial Statements” for additional detail about our short-term
loans and the warrants issued in conjunction with these loans.

46

Equity
Financing

Common
Stock Purchase Agreement

Following
the Business Combination, we are subject to the terms and conditions of (i) a common stock purchase agreement, dated September 7, 2022,
and as amended on October 4, 2023, (the “Common Stock Purchase Agreement”) and (ii) a registration rights agreement, dated
September 7, 2022 (the “White Lion Registration Rights Agreement”), that AHAC entered into with White Lion Capital LLC (“White
Lion”). Pursuant to the Common Stock Purchase Agreement, we have the right from time to time at its option to sell to White Lion
up to $75.0 million in aggregate gross purchase price of newly issued shares (“Equity Line Shares”) of our common stock,
subject to certain limitations and conditions set forth in the Common Stock Purchase Agreement. These limitations stipulate, among other
things, that we may not sell, and White Lion may not purchase, shares of our common stock that would result in White Lion owning more
than 9.99% of our outstanding common stock. The Common Stock Purchase Agreement expires after two years.

In
consideration for the commitments of White Lion to purchase Equity Line Shares, the Common Stock Purchase Agreement included issuing
initial commitment shares with a value of $0.8 million based upon the closing sale price two days prior to the filing of the initial
registration statement.

In
April 2023, the Common Stock Purchase Agreement was amended to fix the number of initial commitment shares at 75,000 shares to White
Lion, which had a fair value of $0.5 million upon issuance. The $0.5 million in commitment costs were recorded in other income (expense)
in our condensed consolidated statements of operations.

Effective
October 4, 2023, the Company and White Lion entered into the first amendment of the Common Stock Purchase Agreement (the “Amendment”).
The Amendment is intended