Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 89

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 1
Chunk 89
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365,000 shares of our common stock to the Sponsor as consideration for providing the loans to us (the “Sponsor Extension
Shares”). In addition, pursuant to the terms of an amendment entered into prior to the paydown of the loans, we issued a total
of 200,000 shares of our common stock in exchange for extension of the maturity date of one of the loans.

We
recognized a loss on extinguishment of debt of $1.2 million in our consolidated statements of operations for the nine months ended September
30, 2023 for the 200,000 shares issued in exchange for extensions of the maturity date, based on the grant date fair value of the shares
issued. In addition, we recognized a loss on extinguishment of debt of $13.6 million in our condensed consolidated statements of operations
for the nine months ended September 30, 2023 for the issuance of the Sponsor Extension Shares, based on the grant date fair value. Further,
we recorded interest expense of $18 thousand and $36 thousand in our condensed consolidated statements of operations for the three and
nine months ended September 30, 2023, respectively.

Ayrton
Convertible Note Financing

In
May 2023, we entered into a Securities Purchase Agreement (the “SPA”) with an accredited investor (the “Investor”)
for the sale of up to three Senior Secured Convertible Notes (each, a “Note” and collectively, the “Notes”),
which Notes are convertible into shares of our common stock, in an aggregate principal amount of up to $27.0 million, in a private placement
(the “Ayrton Convertible Note Financing”).

In
May 2023, we consummated the closing for the sale of (i) the initial Note in the principal amount of $7.6 million and (ii) a warrant
to initially acquire up to 552,141 additional shares of our common stock with an initial exercise price of $11.50 per share of common
stock, subject to adjustment, exercisable immediately and expiring five years from the date of issuance (the “SPA Warrant”).
Each Note will be sold at an original issue discount of 8%. Future issuances of Notes (“Additional Closings”) are subject
to satisfaction of certain conditions. At the closing of the first Additional Closing, $8.64 million in principal amount of Notes will
be issued and $10.8 million in principal amount of Notes will be issued at