Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 228

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 2
Chunk 228
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ants 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) 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.