Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 3472

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1A
Chunk 3472
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 common stock and the number of
beneficial holders of our common stock, possibly making it difficult to maintain the quotation, listing or trading of our securities
on Nasdaq.

If
our common stock does not trade above the floor set in the Backstop Agreement we may never receive cash from the Backstop Providers.

The
Backstop Agreement prohibits the Backstop Providers from selling our shares of common stock that are subject to the restrictions set
forth in the Backstop Agreement unless our common stock is trading above $10.34 per share, which means that no cash will be returned
to us pursuant to any sales under the Backstop Agreement unless and until our common stock is trading above $10.34 and our Backstop Providers
are otherwise able to sell their shares. Therefore, we may never receive cash from the Backstop Providers during the term of the Backstop
Agreement.

The
issuance of our common stock in connection with the Common Stock Purchase Agreement could cause substantial dilution, which could materially
affect the trading price of our common stock.

The
Common Stock Purchase Agreement, by and between us and White Lion Capital, LLC (“White Lion”), dated as of September 7, 2022
(the “Common Stock Purchase Agreement”), grants us the right, but not the obligation, to require White Lion to purchase,
from time to time, up to $75.0 million of newly issued shares of our common stock. To the extent that we exercise our right to sell such
shares under the Common Stock Purchase Agreement, we will need to issue new shares to White Lion. Although we cannot predict the number
of shares of common stock that would actually be issued in connection with any such sale, such issuances could result in substantial
dilution and decreases to our stock price.

73

It
is not possible to predict the actual number of shares of common stock, if any, we will sell under the Common Stock Purchase Agreement
to White Lion or the actual gross proceeds resulting from those sales.

Subject
to the satisfaction of certain customary conditions including, without limitation, the effectiveness of a registration statement to be
filed with the SEC registering the shares to be sold to White Lion for resale, our right to sell shares to White Lion will commence on
the effective date of that registration statement and extend for a period of two years thereafter. During such term, subject to the terms
and conditions of the Common Stock Purchase Agreement, we may notify White Lion when we exercise our right to sell shares.

We