Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 527

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 4
Chunk 527
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 to March 31, 2023. The Company is required to repay the principal and accrued interest of the Second Street Loan and
Second Street Loan 2 the earlier of (i) 5 business days after the Company’s next financing or closing of the Business Combination
or (ii) March 31, 2023. In consideration of the extension of the Second Street Loan, the Company paid a $50,000 extension fee and issued
to Second Street Capital a warrant to purchase 50,000 shares of the Company’s common stock with an exercise price of $10.34
per share exercisable until February 15, 2028. In consideration of the extension of the Second Street Loan 2, the Company paid a $25,000
extension fee and issued to Second Street Capital a warrant to purchase 25,000 shares of the Company’s common stock with an
exercise price of $10.34 per share exercisable until February 15, 2028. The Company recognized a loss on extinguishment of debt of $0.1
million for the shares issued and an expense for the fair value of the warrants issued of $0.1 million in its consolidated financial
statements for the fiscal year ended December 31, 2023. These transactions were effected without registration under the Securities Act
in reliance on the exemption from registration provided under Section 4(a)(2) promulgated thereunder.

In
2024, the Company entered into a settlement agreement with Second Street Capital and McKra Investments III with regard to the full
amount of $2.7 million in aggregate principal amount of promissory notes due, plus accrued and unpaid interest and fees. The Company
will satisfy payment of past due loan fees by the issuance of 225,000 shares of restricted common stock. The Company will also
satisfy the amount due for the principal amount of the notes and accrued and unpaid interest through (i) the issuance of $1.7
million worth of restricted common stock (at a price per share equal to the 30 day vwap of a share of Company common stock as of
July 22, 2024), and (ii) payment of the remaining balance of $1.7 million in cash at the time of closing of the Company’s next
financing with net proceeds to the Company of more than $10 million either in a public offering or private transaction, or if such a
closing does not occur on or before September 30, 2024