Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2012

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 7A
Chunk 2012
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 defaults and penalty shares
to be issued in conjunction therewith, subject to a leak out of 15% of daily trading value unless the sales price of such shares is above
$5.00 per share. The Company also issued the investor 1,332,806 warrants which shall be exchangeable on a one for one basis into
restricted shares of common stock on or after August 1, 2024. All securities are being issued in private placement transactions exempt
from registration under Section 4(a)(2) under the Securities Exchange Act of 1934 as amended.

The
principal amount of the initial 2024 Convertible Notes, which were issued in exchange for the 2023 Convertible Notes is $9.7
million, after giving effect to the principal amount of the 2023 Convertible Notes, the Event of Default Interest to date and
Redemption Premium. At July 15, 2024, the 2023 Convertible Notes were valued at $7.1
million, consisting of the fair value of the 2023 Convertible Notes of $6.3
million, plus accrued and unpaid interest of $0.8
million. The $9.7
million of 2024 Convertible Notes were valued at $6.8
million, resulting in a gain on exchange of notes of $0.3
million. Similarly, the Company valued the SPA Warrants issued in 2023 at $1.6
million and the value of the SPA Warrants issued in the exchange in 2024 at $2.0
million, resulting in a loss on exchange of notes of $0.4
million. The Company has recorded a net loss on exchange of notes of $0.1
million as other income (expense) on its consolidated statement of operations for the fiscal year ended December 31, 2024. At
December 31, 2024, the principal amount outstanding under the 2024 Convertible Note was $13.3
million.

As
part of the agreement, Chirinjeev Kathuria, the Company’s Chairman, and Poseidon Bio, LLC, an entity controlled by Dr. Kathuria,
also agreed to grant a proxy on all of their shares of the Company’s common stock to an independent third party, to vote them as
that party sees fit, until such time as the Notes are paid in full.

As
of December 31, 2024, the Company is in default