Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 3471

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1A
Chunk 3471
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 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 price of our common stock.

Pursuant
to the Backstop Agreement, on the maturity date of the Backstop Agreement, the Backstop Providers will be entitled to consideration of
$2.50 per share of our common stock sold back to us, which is payable in shares of our common stock. The number of shares of our common
stock that will be issued to the Backstop Providers will depend on the number of shares owned by the Backstop Providers at the maturity
date and the trading price of our common stock at that time. The issuance of such common stock in connection with the payment of such
consideration could result in substantial dilution and decreases to our stock price.

In
addition, purchases pursuant to the Backstop Agreement may reduce the public “float” of our