Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2577

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1
Chunk 2577
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 price of our common stock.

Pursuant
to the Backstop Agreement, on the maturity date of the Backstop Agreement, the Backstop Providers will be entitled to consideration of
$2.50 per share of our common stock sold back to us, which is payable in shares of our common stock. The number of shares of our common
stock that will be issued to the Backstop Providers will depend on the number of shares owned by the Backstop Providers at the maturity
date and the trading price of our common stock at that time. The issuance of such common stock in connection with the payment of such
consideration could result in substantial dilution and decreases to our stock price.

In
addition, purchases pursuant to the Backstop Agreement may reduce the public “float” of our common stock and the number of
beneficial holders of our common stock, possibly making it difficult to maintain the quotation, listing or trading of our securities
on Nasdaq.

If
our common stock does not trade above the floor set in the Backstop Agreement we may never receive cash from the Backstop Providers.

The
Backstop Agreement prohibits the Backstop Providers from selling our shares of common stock that are subject to the restrictions set
forth in the Backstop Agreement unless our common stock is trading above $10.34 per share, which means that no cash will be returned
to us pursuant to any sales under the Backstop Agreement unless and until our common stock is trading above $10.34 and our Backstop Providers
are otherwise able to sell their shares. Therefore, we may never receive cash from the Backstop Providers during the term of the Backstop
Agreement.

The
issuance of our common stock in connection with the Common Stock Purchase Agreement could cause substantial dilution, which could materially
affect the trading price of our common stock.

The
Common Stock Purchase Agreement, by and between us and White Lion Capital, LLC (“White Lion”), dated as of September 7, 2022
(the “Common Stock Purchase Agreement”), grants us the right, but not the obligation, to require White Lion to purchase,
from time to time, up to $75.0 million of newly issued shares of our common stock. To the extent that we exercise our right to sell such
shares under the Common Stock Purchase Agreement, we will need to issue new shares to White Lion. Although we cannot predict the number
of shares of common stock that would actually be issued in connection with any such sale, such issuances could result