Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 90

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 1
Chunk 90
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 the closing of the second Additional Closing. So long as any
Notes remain outstanding, we and each of our subsidiaries are prohibited from effecting or entering into an agreement to effect any subsequent
placement involving a Variable Rate Transaction, as defined within the SPA, other than pursuant to the White Lion Common Stock Purchase
Agreement.

45

We
were required to obtain stockholder approval authorizing the issuance of our common stock under the Notes and Warrant in compliance with
the rules and regulations of the Nasdaq (without regard to any limitations on conversion or exercise set forth in the Notes or Warrant,
respectively), including, shares of our common stock to be issued in connection with any Additional Closing. We obtained stockholder
approval of the transaction in August 2023 at a special meeting of stockholders. As a result, there is no limitation under the SPA that
would prohibit us from issuing to the investor shares of common stock in excess of 19.99% of our outstanding shares of common stock as
of the date of the SPA.

The
interest rate applicable to each Note is, as of any date of determination, the lesser of (i) 8% per annum and (ii) the greater of (x)
5% per annum and (y) the sum of (a) the “secured overnight financing rate,” which from time to time is published in the “Money
Rates” column of The Wall Street Journal (Eastern Edition, New York Metro), in effect as of such date of determination and (b)
2% per annum. Each Note will mature on the first anniversary of its issuance. Additionally, each Note is required to be senior to all
of our other indebtedness, other than certain permitted indebtedness. The Notes will be secured by all of our existing and future assets
(including those of our significant subsidiaries). Upon the occurrence of certain events, the Notes will be payable in monthly installments.
A noteholder may, at its election, defer the payment of all or any portion of the installment amount due on any installment date to another
installment payment date.

All
or any portion of the principal amount of each Note, plus accrued and unpaid interest is convertible at any time, in whole or in part,
at the noteholder’s option, into shares of our common stock at an initial fixed conversion price of $10.34 per share, subject to
certain adjustments and alternative conditions. A noteholder will not have the right to convert any portion of a Note,