Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 226

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 2
Chunk 226
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. 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 the closing of the second Additional Closing. So long as any
Notes remain outstanding, we and each of our subsidiaries are prohibited from effecting or entering into an agreement to effect any subsequent
placement involving a Variable Rate Transaction, as defined within the SPA, other than pursuant to the White Lion Common Stock Purchase
Agreement.

45

We
were required to obtain stockholder approval authorizing the issuance of our common stock under the Notes and Warrant in compliance with
the rules and regulations of the Nasdaq (without regard to any limitations on conversion or exercise set forth in the Notes or Warrant,
respectively), including, shares of our common stock to be issued in connection with any Additional Closing. We obtained stockholder
approval of the transaction in August 2023 at a special meeting of stockholders. As a result, there is no limitation under the SPA that
would prohibit us from issuing to the investor shares of common stock in excess of 19.99%