Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 144

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 144
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 Notice including, but not limited to, Vellar’s right to terminate their portion of the
Backstop Agreement and their asserted Maturity Consideration calculation. As such, the Company is consulting with advisors and other parties
and is considering the potential resources and remedies it may elect to pursue and intends to assert its rights should this matter not
be resolved. After a review of all applicable documents related to the Backstop Agreement, the Company believes its position with respect
to the terms of the Backstop Agreement and intent of the parties is supported by the Backstop Agreement and facts and circumstances under
which it was entered into. Further, given the early stage of this matter and the uncertainty inherent in litigation and investigations,
the Company does not currently believe it is (i) probable to incur losses or (ii) possible to develop estimates of reasonably possible
losses (or a range of possible losses) for this matter.

On October 2, 2023,
the Company entered into a Side Letter Agreement (the “Side Letter”) with Polar. The Side Letter amended certain terms of
the Polar Agreement, as discussed in Note 3, Business Combination and Backstop Agreement. The Side Letter amended the definitions
of “Seller VWAP Trigger Event” and “Reset Price” as used in the Backstop Agreement as it relates to Polar and
the Polar Agreement. Per the amended definitions, the (i) “Seller VWAP Trigger Event” is an event that occurs if the VWAP
price is below $2.50 per share for any 20 trading days during
a 30 consecutive trading day-period thereafter and (ii) the “Reset Price” is defined as $8.00.
The Side Letter did not amend any terms of the Backstop Agreement as it relates to the other Backstop Parties.

The “Seller VWAP Trigger Event” for Polar
occurred in October 2023 and the other Backstop Parties in November 2023. The Company received written notice from Polar on November 6,
2023, acknowledging its right to designate any date as the Maturity Date from the date of the notice to, and including, the third anniversary
of the Business Combination. As of the date of this filing, one of the Backstop Parties, Polar had not designated a Maturity Date. Refer
to above in this footnote for further detail around the purported Maturity Date for Vellar.

    16

Deferred Underwriting Commissions

At Closing, the underwriters
for AHAC’s initial public offering (“I