Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 810

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 5
Chunk 810
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 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 are 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 consolidated statements of stockholders’ deficit and
cash flows for the fiscal year ended December 31, 2023:

 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 

    F-15

Earnout
Shares

In
addition, pursuant to the 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”) as follows: (a)
in the event that the volume-weighted average price (the “VWAP”) of the Company’s common stock exceeds $15.00 per
share for twenty (20) out of any thirty (30) consecutive trading days beginning on the Closing date until the 36-month anniversary
of