Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2305

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1A
Chunk 2305
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 the Backstop Agreement, the Company believes
its position with respect to the terms of the Backstop Agreement and intent of the parties is supported by the Backstop Agreement and
facts and circumstances under which it was entered into. Further, given the early stage of this matter and the uncertainty inherent in
litigation and investigations, the Company does not currently believe it is (i) probable to incur losses or (ii) possible to develop
estimates of reasonably possible losses (or a range of possible losses) for this matter.

On
October 2, 2023, the Company entered into a Side Letter Agreement (the “Side Letter”) with Polar. The Side Letter amended
certain terms of the Polar Agreement, as discussed in Note 3, Business Combination and Backstop Agreement. The Side Letter amended the
definitions of “Seller VWAP Trigger Event” and “Reset Price” as used in the Backstop Agreement as it relates
to Polar and the Polar Agreement. Per the amended definitions, the (i) “Seller VWAP Trigger Event” is an event that occurs
if the VWAP price is below $2.50 per share for any 20 trading days during a 30 consecutive trading day-period thereafter and (ii) the
“Reset Price” is defined as $8.00. The 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, one of the Backstop
Parties, Polar has not designated a Maturity Date. Refer to Note 3, Business Combination and Backstop Agreement, for further detail
around the purported Maturity Date for Vellar.

Sponsor
Promissory Notes

On
December 13, 2022, AHAC entered into a Loan and Transfer Agreement between AHAC, the Sponsor, and NPIC Limited (the “NPIC Lender”),
pursuant to which the Lender loaned $1.1 million to the Sponsor and the Sponsor loaned $1.1 million to AHAC (the “NPIC Sponsor
Extension Loan”). Amounts loaned