Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 3616

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1A
Chunk 3616
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 initial Note in the principal
amount of $7.56 million and (ii) a warrant to initially acquire up to 552,141 additional shares of our Common Stock with an initial exercise
price of $11.50 per share of Common Stock, subject to adjustment, exercisable immediately and expiring five years from the date of issuance
(the “Ayrton Warrant”), which is subject to customary closing conditions, on May 25, 2023. The Notes will be sold at an original
issue discount of eight percent (8%). Future issuances of Notes (“Additional Closings”) are subject to satisfaction of certain
conditions. The SPA contains certain representations and warranties, covenants and indemnities customary for similar transactions. At
the closing of the first Additional Closing, $8.64 million of Notes will be issued (the “First Additional Closing Date”)
and $10.8 million of Notes will be issued at the closing of the second Additional Closing. So long as any Notes remain outstanding, we
are prohibited from effecting or entering into an agreement to effect any subsequent placement involving a Variable Rate Transaction,
other than pursuant to the White Lion Common Stock Purchase Agreement. “Variable Rate Transaction” means a transaction in
which we (i) issue or sell any convertible securities either (A) at a price that is based upon with the trading prices of our Common
Stock, or (B) with a price that is subject to being reset at some future date or upon the occurrence of specified events related to the
business of the Company or the market for our Common Stock, other than pursuant to a customary “weighted average” anti-dilution
provision or (ii) enters into any agreement whereby we may sell securities at a future determined price (other than standard and customary
“preemptive” or “participation” rights).

147

We
are required to obtain stockholder approval authorizing the issuance of our common stock under the Notes and the Ayrton Warrant in compliance
with the rules and regulations of the Nasdaq Capital Market (“Nasdaq”) (without regard to any limitations on conversion or
exercise set forth in the Notes or the Ayrton Warrant, respectively), including, shares of our Common Stock to be issued in connection
with any Additional Closing. Unless we obtain the approval of our stockholders as required by Nasdaq, we will be prohibited from issuing
any shares of Common Stock upon conversion of the Notes or otherwise pursuant to the terms of the Notes or