Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 213

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 2
Chunk 213
---
 an additional
    1,365,000 shares of the Company’s Class A common stock prior to the Closing in consideration for the Sponsor obtaining extensions
    beyond the September 16, 2022 deadline to complete an initial business combination.

    ●
    The Backstop Parties purchased
    3,535,466 shares of the Company’s Class A common stock prior to the closing that were not redeemed and are subject to the forward
    purchase provisions of the Backstop Agreement (the “Recycled Shares”).

    ●
    The Backstop Parties purchased
    an additional 1,200,000 shares of the Company’s Class A common stock prior to the Closing that were not redeemed (the “Share
    Consideration Shares”).

    ●
    We issued three warrants
    to Second Street Capital exercisable to acquire that number of shares of our common stock equal to the economic value of the Legacy
    Ocean warrants previously issued to Second Street Capital in exchange for the termination of the Legacy Ocean warrants. The new warrants
    are exercisable for a total of 511,712 shares of our common stock at an exercise price of $8.06 per share and 102,342 shares of our
    common stock at an exercise price of $7.47 per share.

    ●
    We issued to Polar 1,350,000
    newly issued shares of our common stock that are subject to the forward purchase provisions of the Backstop Agreement.

    ●
    On February 15, 2023, one
    day following the Closing, we paid the Prepayment of $51.6 million to the Backstop Parties utilizing funds from AHAC’s trust
    account, pursuant to the terms of the Backstop Agreement, as discussed below. The total Prepayment includes $37.3 million from the
    purchase of the Recycled Shares and $14.3 million from the purchase of the Share Consideration Shares. As the $14.3 million was a
    netted transaction between us and Polar, only $37.3 million was actually paid out of the funds received from the trust account.

    ●
    Each share of AHAC’s
    Class A common stock was automatically reclassified into one share of the Company’s common stock, including the remaining shares
    of AHAC Class A common stock that were not redeemed.

The
Business Combination is accounted for as a reverse capitalization in accordance with U.S. GAAP. Under the guidance in ASC