Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2391

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1A
Chunk 2391
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 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 Terminated Shares by (ii) $2.50 (the “Maturity Consideration”). The Company can pay the Maturity
Consideration in cash or shares of the Company’s common stock if certain conditions are met.

The
Backstop Parties have purchased a fixed total of 4,885,466 of the Company’s common stock, referred to herein as the “Backstop
Shares.” The Backstop Parties’ Optional Early Termination economically results in the Backstop Agreement operating in substance
to grant the Backstop Parties’ a put option with the right to sell all or a portion of the 4,885,466 Backstop Shares. Over the
three-year maturity period, the Company is entitled to either a return of the Prepayment, the underlying shares, or a combination thereof,
at the sole discretion of the Backstop Parties.

    F-12

For
further information regarding the Backstop Agreement, refer to Note 3, Business Combination and Backstop Agreement.

Backstop
Put Option Liability and Fixed M