Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2404

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1A
Chunk 2404
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 Side Letter did not amend any terms of
the Backstop Agreement as it relates to the other Backstop Parties.

The
“Seller VWAP Trigger Event” for Polar occurred in October 2023 and the other Backstop Parties in November 2023. The Company
received written notice from Polar on November 6, 2023 acknowledging its right to designate any date as the Maturity Date from the date
of the notice to, and including, the third anniversary of the Business Combination. As of the date of this filing, two of the Backstop
Parties, Polar and Meteora, had not designated a Maturity Date. Refer to above in this footnote for further detail around the purported
Maturity Date for Vellar.

Common
Stock Purchase Agreement

The
Company is subject to the terms and conditions of (i) a common stock purchase agreement, dated September 7, 2022, and as amended on October
4, 2023 (the “Common Stock Purchase Agreement”) and (ii) a registration rights agreement, dated September 7, 2022 (the “White
Lion Registration Rights Agreement”), that AHAC entered into with White Lion Capital LLC (“White Lion”). Pursuant to
the Common Stock Purchase Agreement, the Company has the right from time to time at its option to sell to White Lion up to $75.0 million
in aggregate gross purchase price of newly issued shares of the Company’s common stock (the “Equity Line Shares”),
subject to certain limitations and conditions set forth in the Common Stock Purchase Agreement. These limitations stipulate, among other
things, that the Company may not sell, and White Lion may not purchase, shares of the Company common stock that would result in White
Lion owning more than 9.99% of the outstanding common stock of the Company. The Common Stock Purchase Agreement expires after two years.

In
accordance with ASC 815, Derivatives and Hedging, the Company has determined that the right to sell additional shares represents
a freestanding put option, and as such, the financial instrument was classified as a derivative asset with a nominal fair value.

In
consideration for the commitments of White Lion to purchase Equity Line Shares, the Common Stock Purchase Agreement included 75,000
initial commitment shares to White Lion, which had a fair value of $0.5
million upon issuance. The $0.5
million in commitment costs was recorded in other income (expense) in the Company