Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2301

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1A
Chunk 2301
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 trading days beginning on the Closing Date until the 36-month anniversary
of the Closing Date, the holders of Legacy Ocean securities pre-Closing shall be entitled to receive an additional 5,000,000 shares of
the Company’s common stock, (b) in the event that the VWAP of the Company’s common stock exceeds $17.50 per share for twenty
(20) out of any thirty (30) consecutive trading days beginning on the Closing Date until the 36-month anniversary of the Closing Date,
the holders of Legacy Ocean’s securities pre-Closing shall be entitled to receive an additional 7,000,000 shares of the Company’s
common stock and (c) in the event that the VWAP of the Company’s common stock exceeds $20.00 per share for twenty (20) out of any
thirty (30) consecutive trading days beginning on the Closing Date until the 36-month anniversary of the Closing Date, the holders of
Legacy Ocean’s securities pre-Closing shall be entitled to receive an additional 7,000,000 shares of the Company’s common
stock. In addition, for each issuance of Earnout Shares, the Company will also issue to Sponsor an additional 1,000,000 shares of the
Company’s common stock.

Upon
consummation of the Business Combination, there was outstanding an aggregate of 5,250,000 Public Warrants and 5,411,000 Private Placement
Warrants. Each of our outstanding whole warrants is exercisable commencing 30 days following the Closing for one share of common stock.

The
Business Combination is accounted for as a reverse recapitalization in accordance with U.S. generally accepted accounting principles
(“U.S. GAAP”). Under this method of accounting, AHAC, who is the legal acquirer, is treated as the “acquired”
company for financial reporting purposes and Legacy Ocean is treated as the accounting acquirer.

The
Business Combination is accounted for as the equivalent of a capital transaction in which Legacy Ocean has issued stock for the net assets
of AHAC. The net assets of AHAC are stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior
to the Closing of the Business Combination are Legacy Ocean and operations post-Closing of the Business Combination are the Company,
on a consolidated basis with Legacy Ocean.

141

Backstop
Agreement

On
February 12, 2023, AHAC, Legacy Ocean and Vellar Opportunity Fund SPV LLC