Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2576

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1
Chunk 2576
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 covenants limiting
or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends.
If we raise additional capital through marketing and distribution arrangements or other collaborations, strategic alliances or licensing
arrangements with third parties, we may have to relinquish certain valuable intellectual property or other rights to our product candidates,
technologies, future revenue streams or research programs or grant licenses on terms that may not be favorable to us. We also may be
required to seek collaborators for any of our product candidates at an earlier stage than otherwise would be desirable or relinquish
our rights to product candidates or technologies that we otherwise would seek to develop or commercialize ourselves. Market volatility
and unforeseen events, such as the conflict between Russia and Ukraine, could also adversely impact our ability
to access capital as and when needed. If we are unable to raise additional capital in sufficient amounts or on terms acceptable to us,
we may have to significantly delay, scale back or discontinue the development or commercialization of one or more of our product candidates
or one or more of our other research and development initiatives. Any of the above events could significantly harm our business, prospects,
financial condition and results of operations and cause the price of our common stock to decline.

The
Backstop Agreement could impose cash constraints on us in the long-term.

Pursuant
to the OTC Equity Prepaid Forward Transaction (the “Backstop Agreement”) with Vellar Opportunity Fund SPV LLC – Series
3, Meteora Special Opportunity Fund I, LP, Meteora Capital Partners, LP, Meteora Select Trading Opportunities Master, LP, and Polar Multi-Strategy
Master Fund (the “Backstop Providers”), the Backstop Providers purchased shares of Aesther Class A common stock from shareholders
of Aesther including those that elected to exercise their option to redeem their shares. However, no later than three years after the
Closing of the Business Combination, we may be required to repurchase shares purchased by the Backstop Providers from Aesther’s
redeeming shareholders, which could create a significant constraint on our cash and significantly reduce the amount of shares that are
outstanding in the long-term. As a result, we may lack sufficient cash to exploit lucrative business opportunities and may need to resort
to financing on burdensome terms.

The
issuance of our common stock to the Backstop Providers pursuant to the Backstop Agreement could cause substantial dilution, which could
materially affect the trading