Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 200

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 2
Chunk 200
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6 million, which is recorded as
a short-term loan in the consolidated financial statements.

On
November 13, 2024, the Company received a notice of default with regard to its 2023 promissory note with EF Hutton, which alleges that
$2.1 million is due under the promissory note, consisting of the unpaid principal balance of $1.6 million, plus accrued and unpaid interest
of $0.5 million.

Common
Stock Purchase Agreement

On
September 7, 2022, AHAC entered into the Common Stock Purchase Agreement (the “Common Stock Purchase Agreement”) and the
White Lion Registration Rights Agreement (“White Lion RRA”) with White Lion. Pursuant to the Common Stock Purchase Agreement,
we have the right, but not the obligation to require White Lion to purchase, from time to time, up to $75.0 million in aggregate gross
purchase price of Equity Line Shares, subject to certain limitations and conditions set forth in the Common Stock Purchase Agreement.

144

We
are obligated under the Common Stock Purchase Agreement and the White Lion RRA to file a registration statement with the SEC to register
under the Securities Act the common stock subject to the Common Stock Purchase Agreement, for the resale by White Lion of shares of the
Company’s common stock that the Company may issue to White Lion under the Common Stock Purchase Agreement.

Subject
to the satisfaction of certain customary conditions, our right to sell the Equity Line Shares to White Lion will commence on the effective
date of the registration statement and extend for a period of two years. During such term, subject to the terms and conditions of the
Common Stock Purchase Agreement, we may notify White Lion when it exercises its right to sell Equity Line Shares (the effective date
of such notice, a “Notice Date”). The number of Equity Line Shares sold pursuant to any such notice may not exceed (i) $2.0
million, divided by the closing price of the Company’s common stock on Nasdaq preceding the Notice Date and (ii) a number of shares
of common stock equal to the average daily trading volume multiplied by 67%.

At
any given time of any sale by us to White Lion, we may not sell, and White Lion may not purchase, Equity Line Shares of the Company’s
common stock that would result in White Lion owning more than the 9.99% Beneficial Ownership Cap upon such issuance.

The
purchase price to be paid by White Lion for any such shares will