Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 104

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 1
Chunk 104
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 could realize from
such sales and we cannot assure you that we will be able to refinance any of our indebtedness, including amounts owed under the securities
purchase agreement entered into in May 2023, on commercially reasonable terms or at all.

Because
there are outstanding notes, obligations and warrants convertible into a significant number of shares of our common stock, holders of
our common stock could be subject to significant dilution.

We
have funded various of our operations through convertible debt obligations. From time to time we have also issued a number of shares
and warrants to acquire services and assets from third parties. To the extent that our debt obligations are satisfied by way of conversions
and we issue additional shares of our common stock to satisfy obligations or in consideration for assets or services these issuances
would have a dilutive effect on our existing stockholders.

Because
of alternate conversion price notices from our principal noteholder, there may be significant dilution.

Between
March 4, 2024 and March 8, 2024, our principal noteholder sent Alternate Conversion Notices to the Company to convert the principal value
and accrued and unpaid interest under its Note with the Company into shares of Company common stock pursuant to the Alternate Conversion
Price mechanism in the Note. The Company is currently evaluating the situation and working with the noteholder to arrive at an equitable
resolution. If not resolved, an issuance of shares could result in significant dilution.

Item
2. Unregistered Sales of Equity Securities and Use of Proceeds

Unregistered
Sales of Equity Securities

Set
forth below is information regarding equity securities issued by us during the period covered by this Report that were not registered
under the Securities Act. No underwriters were involved in the sales and the certificates (or book entry notations) representing the
securities sold and issued contain legends restricting transfer of the securities without registration under the Securities Act or an
applicable exemption from registration.

Issuances
of Capital Stock

In
connection with the loan modification agreement, dated March 22, 2023, between the Company and NPIC Limited (the “Loan Modification
Agreement”), in August, 2023, we issued to NPIC Limited 50,000 shares of our common stock in exchange for a previous extension
of the maturity date of the loan made pursuant to the Loan and Transfer Agreement between AHAC, the Sponsor and NPIC Limited dated December
13, 2022. This transaction was effected without registration under the Securities Act in