Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 91

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 1
Chunk 91
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 to the extent
that, after giving effect to such conversion, the noteholder (together with certain of its affiliates and other related parties) would
beneficially own in excess of 9.99% of the shares of our common stock outstanding immediately after giving effect to such conversion.
Upon a change of control, noteholders may require us to redeem all, or any portion, of the Notes at a price stipulated by certain conditions
as discussed within the SPA.

The
Notes provide for certain events of default, including, among other things, any breach of the covenants described in the SPA and any
failure of Dr. Chirinjeev Kathuria to be the chairman of our Board of Directors. In connection with an event of default, the noteholders
may require us to redeem all or any portion of the Notes, at a premium set forth in the SPA.

We
are subject to certain customary affirmative and negative covenants regarding the rank of the Notes, the incurrence of indebtedness,
the existence of liens, the repayment of indebtedness and the making of investments, the payment of cash in respect of dividends, distributions
or redemptions, the transfer of assets, the maturity of other indebtedness, and transactions with affiliates, among other customary matters.
We are also subject to financial covenants requiring that (i) the amount of our available cash equal or exceed $3.0 million at the time
of each Additional Closing; (ii) the ratio of (a) the outstanding principal amount of the Notes, accrued and unpaid interest thereon
and accrued and unpaid late charges to (b) our average market capitalization over the prior ten trading days, not exceed 35%; and (iii)
at any time any Notes remain outstanding, with respect to any given 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