Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2680

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1
Chunk 2680
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 Act of 1996, which is a federal statute, prevents or preempts the states from regulating the
sale of certain securities, which are referred to as “covered securities.” Since our common stock and warrants are listed
on Nasdaq, they will be covered securities. Although the states are preempted from regulating the sale of our securities, the federal
statute does allow the states to investigate companies if there is a suspicion of fraud, and, if there is a finding of fraudulent activity,
then the states can regulate or bar the sale of covered securities in a particular case. While we are not aware of a state, other than
the state of Idaho, having used these powers to prohibit or restrict the sale of securities issued by blank check companies, certain
state securities regulators view blank check companies unfavorably and might use these powers, or threaten to use these powers, to hinder
the sale of securities of blank check companies in their states. Further, if our securities were no longer listed on Nasdaq, our securities
would not be covered securities and we would be subject to regulation in each state in which we offer our securities.

If,
after listing, we fail to satisfy the continued listing requirements of Nasdaq such as the corporate governance requirements or the minimum
closing bid price requirement, Nasdaq may take steps to delist its securities. Such a delisting would likely have a negative effect on
the price of the securities and would impair your ability to sell or purchase the securities when you wish to do so. In the event of
a delisting, we can provide no assurance that any action taken by it to restore compliance with listing requirements would allow its
securities to become listed again, stabilize the market price or improve the liquidity of its securities, prevent its securities from
dropping below the Nasdaq minimum bid price requirement or prevent future non-compliance with Nasdaq’s listing requirements. Additionally,
if our securities are not listed on, or become delisted from, Nasdaq for any reason, and are quoted on any of the markets offered by
OTC Markets Group Inc., the liquidity and price of these securities may be more limited than if they were quoted or listed on Nasdaq
or another national securities exchange. Our securityholders may be unable to sell their securities unless a market can be established
or sustained.

An
active market for our securities may not develop, which would adversely affect the liquidity and price our securities.

The
price of our securities may vary significantly due to factors specific to us as well as to