Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 141

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 141
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encies have been met.

    14

Backstop Agreement

As discussed in Note 2, Basis
of Presentation and Summary of Significant Accounting Policies, on August 31, 2022, AHAC and Legacy Ocean entered into the Backstop
Agreement with Vellar in connection with the execution of the Business Combination Agreement. Pursuant to the terms of the Backstop Agreement
and its subsequent amendments, Vellar agreed to purchase up to 8,000,000 shares of AHAC’s Class A common stock in the open market
in exchange for up to $80.0 million, including from other stockholders that elected to redeem in connection with the Closing and subsequently
revoked their prior elections to redeem their shares, following the expiration of AHAC’s redemption offer.

On February 13, 2023, AHAC, Vellar
and Legacy Ocean entered into an assignment and novation agreement with Meteora Special Opportunity Fund I, LP, Meteora Select Trading
Opportunities Master, LP and Meteora Capital Partners, LP (collectively “Meteora”) (the “Meteora Agreement”),
pursuant to which Vellar assigned its obligation to purchase 2,666,667 shares of the Company’s common stock under the Backstop Agreement
to Meteora. In addition, on February 13, 2023, AHAC, Vellar and Legacy Ocean entered into an assignment and novation agreement with Polar
Multi-Strategy Master Fund (“Polar” and, collectively with Vellar and Meteora, the “Backstop Parties”) (the “Polar
Agreement”), as amended on October 2, 2023, pursuant to which Vellar assigned its obligations to 2,667,667 shares of common stock
of the Company to be purchased under the Backstop Agreement to Polar.

Further, the Backstop Agreement
grants the Backstop Parties the right to purchase additional shares from the Company (the “Additional Shares” and, together
with the Recycled Shares (defined below), the “Backstop Shares”) up to an amount equal to the difference between the number
of Recycled Shares and the maximum number of shares of 8,000,000.

As further discussed in Note
2, Basis of Presentation and Summary of Significant Accounting Policies, the Company agreed to purchase the unsold portion of the
Backstop Shares from the Backstop Parties on a forward basis upon the Maturity Date. The purchase price payable by the Company includes