Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 465

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 3
Chunk 465
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 the Earnout Shares offset within additional paid-in capital, there is no inherent impact to the consolidated financial
statements. Since the Earnout Shares are contingent on the Company’s stock price, there will be no impact to outstanding shares
and will not represent participating securities until the time at which the contingencies have been met.

Backstop
Agreement

As
discussed in Note 2, Basis of Presentation and Summary of Significant Accounting Policies, on August 31, 2022, AHAC and Legacy
Ocean entered into the Backstop Agreement with Vellar Opportunity Fund SPV LLC – Series 3 (“Vellar”) in connection with the execution of the Business Combination Agreement. Pursuant
to the terms of the Backstop Agreement and its subsequent amendments, Vellar agreed to purchase up to 8,000,000 shares of AHAC’s
Class A common stock in the open market in exchange for up to $80.0 million, including from other stockholders that elected to redeem
in connection with the Closing and subsequently revoked their prior elections to redeem their shares, following the expiration of AHAC’s
redemption offer.

On
February 13, 2023, AHAC, Vellar and Legacy Ocean entered into an assignment and novation agreement with Meteora Special Opportunity Fund
I, LP, Meteora Select Trading Opportunities Master, LP and Meteora Capital Partners, LP (collectively “Meteora”) (the “Meteora
Agreement”), pursuant to which Vellar assigned its obligation to purchase 2,666,667 shares of the Company’s common stock
under the Backstop Agreement to Meteora. In addition, on February 13, 2023, AHAC, Vellar and Legacy Ocean entered into an assignment
and novation agreement with Polar Multi-Strategy Master Fund (“Polar” and, collectively with Vellar and Meteora, the “Backstop
Parties”) (the “Polar Agreement”), as amended on October 2, 2023, pursuant to which Vellar assigned its obligations
to 2,667,667 shares of common stock of the Company to be purchased under the Backstop Agreement to Polar.

Further,
the Backstop Agreement grants the Backstop Parties the right to purchase additional shares from the Company (the “Additional Shares”
and, together with the Recycled Shares (defined below), the “Backstop Shares”) up to an amount equal to the difference between
the number of Recycled Shares and the maximum number of