Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 3040

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 8
Chunk 3040
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 expenses, and short-term loans approximate
their fair values due to the short-term nature of these liabilities.

Backstop
Put Option Liability and Fixed Maturity Consideration

Backstop
Agreement

In
connection with the execution of the Business Combination, AHAC and Legacy Ocean entered into an OTC Equity Prepaid Forward Transaction
(as amended, the “Backstop Agreement”) with the Backstop Parties (as defined in Note 3, Business Combination and Backstop
Agreement). The Backstop Agreement grants the Backstop Parties the right to purchase up to a maximum of 8,000,000
of the Company’s common stock on the open
market for $10.56
per share (the “Redemption Price”).
The Company agreed to purchase the unsold portion of the Backstop Shares from the Backstop Parties on a forward basis upon the “Maturity
Date” (as amended, the third anniversary of the closing of the Business Combination, subject to certain acceleration provisions).
The purchase price payable by the Company includes a prepayment in the amount of the redemption price per share (the “Prepayment”)
from the proceeds released from the trust account related to those shares. Among the acceleration provisions is the Backstop Parties’
right to accelerate the Maturity Date if the Company’s stock price trades below a stipulated price per share for any 30 trading
days during a 45 day consecutive trading-day period (in October 2023, this acceleration provision was amended with one Backstop Party
providing it the right to accelerate the Maturity Date if the Company’s stock price trades below a stipulated price per share for
any 20 trading days during a 30 day consecutive trading-day period). On any date following the closing of the Business Combination, the
Backstop Parties also have the option to early terminate the arrangement in whole or in part by providing an optional early termination
date notice to the Company (the “Optional Early Termination”). For those shares that are early terminated (the “Terminated
Shares”), the Backstop Parties will owe the Company an amount equal to the product of (x) the number of Terminated Shares and (y)
the Redemption Price, which may be reduced in the case of certain dilutive events (the “Reset Price”).

Upon
the Maturity Date, the Company is obligated to pay the Backstop Parties an amount equal to the product of (i) the maximum number of shares
of 8,000,000 less the number of Termin