Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 123

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 8
Chunk 123
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 deadline to complete an initial business combination.

    ●
    The Backstop Parties purchased
    1,200,000 shares of AHAC’s Class A common stock in the open market for an aggregate purchase price of $12.7 million prior to
    the Closing (the “Share Consideration Shares”).

    ●
    The Company issued to Second
    Street Capital, LLC (“Second Street Capital”), Legacy Ocean’s lender, three warrants (the “Converted Ocean
    Warrants”) exercisable to acquire that number of shares of the Company’s common stock equal to the economic value of
    the Legacy Ocean warrants previously issued to Second Street Capital in exchange for the termination of the Legacy Ocean warrants.
    The Converted Ocean Warrants were exercisable for a total of 511,712 shares of the Company’s common stock at an exercise price
    of $8.06 per share and 102,342 shares of the Company’s common stock at an exercise price of $7.47 per share.

    ●
    The Company issued to Polar
    (as defined below within Backstop Agreement) 1,350,000 newly issued shares of its common stock that are subject to the forward
    purchase provisions of the Backstop Agreement.

    ●
    Each share of AHAC’s
    Class A common stock was automatically reclassified into one share of the Company’s common stock, including the remaining shares
    of AHAC Class A common stock that were not redeemed.

The
following table reconciles the elements of the Business Combination to the unaudited condensed consolidated statements of stockholders’
deficit and cash flows for the nine months ended September 30, 2024:

Schedule of Elements of Business Combination

    (in thousands) 

    Cash from AHAC trust, net of redemptions 
    $52,070 
  
    Offering costs from Business Combination 
     (2,049)
  
    Net impact on total stockholders’ deficit 
     50,021 

    Non-cash offering costs 
     2,049 
  
    Net impact on cash provided by financing activities 
    $52,070 

Earnout
Shares

In
addition, pursuant to Business Combination Agreement, Legacy Ocean’s stockholders prior to the Closing (the “Legacy Ocean
Stockholders”) are entitled to receive from the Company, in the aggregate, up to an additional 19,000,000 shares of the Company’s
common stock (the “Earnout Shares