Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 3603

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1A
Chunk 3603
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 2023, we made the Prepayment of $50.4 million and commissions
and fee payments of $1.2 million for a total amount of $51.6 million.

We
also provided the Backstop Parties with an additional $12.7 million, to compensate them for their purchase of 1,200,000 additional shares
of Class A common stock in the open market (the “Share Consideration Shares”). Under the Backstop Agreement, the Share Consideration
Shares are not subject to the terms applicable to the Recycled Shares, including with regard to repayment and repurchase as described
below.

The
Backstop Agreement grants the Backstop Parties the right to purchase from us additional shares (the “Additional 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. On February
14, 2023, pursuant to Polar’s exercise of its right to purchase Additional Shares, AHAC, Legacy Ocean and Polar entered into a
subscription agreement pursuant to which Polar purchased 1,350,000 newly issued shares of our common stock at a per share purchase price
of approximately $10.56 and an aggregate purchase price of $14.3 million (the “Polar Subscription”). Under the Backstop Agreement,
the Additional Shares are subject to the same terms as the Recycled Shares, including with regard to repayment and repurchase as described
below.

From
time to time, each Backstop Party, in its discretion, may declare an early termination of the Backstop Agreement with regard to all or
a portion of the Recycled Shares and Additional Shares (such shares “Terminated Shares”) and remit to us, no later than the
later of (i) the third local business day following the date the shares become Terminated Shares and (ii) the last day of each calendar
quarter after the date the shares become terminated shares, an amount equal to the number of Terminated Shares multiplied by a price
(the “Reset Price”) that adjusts on the first scheduled trading day of each month to be the lowest of (a) the then-current
Reset Price, (b) the per share redemption price of $10.56 and (c) the VWAP for the last ten trading days of the prior month, but in no
case less than $10.34.

142

Under
the Backstop Agreement, we have agreed to purchase the Recycled Shares and Additional Shares (together,