Ocean Biomedical announces loan commitment of up to $10 million from largest stockholder

Ocean Biomedical, Inc. (NASDAQ: OCEA), a biopharma firm that works with analysis universities and medical facilities to develop and commercialize their discoveries, Wednesday mentioned it has entered right into a non-binding time period sheet with its largest stockholder, Poseidon Bio, LLC, for a proposed debt facility consisting of convertible promissory notes with a principal quantity of as much as $10 million. Poseidon Bio is majority-owned by Dr. Chirinjeev Kathuria.

The promissory notes could also be issued in a number of closings. The corporate doesn’t count on to attract the total quantity at anyone closing.  The promissory notes below the proposed debt facility will likely be unsecured basic obligations of Ocean, junior to the corporate’s current senior lender, and can mature in a single 12 months following the issuance date.

There will likely be no restrictions on the usage of proceeds and curiosity can be payable in money. The conversion value will likely be $10.34 per share, topic to sure potential changes. Poseidon is predicted to be offered warrant protection, with the warrants to have an preliminary train value of $11.50 per share. 

“Ocean Biomedical is thrilled with Poseidon’s continued assist of the corporate as evidenced by this mortgage dedication. We stay up for finalizing the documentation and propelling Ocean Biomedical ahead,” mentioned Elizabeth Ng, Ocean’s chief govt officer.

An announcement from Ocean this week revealed that its cancer-targeting immunotherapy antibody candidate has proven efficient tumor discount towards an aggressive subset of Non-Small Cell Lung Most cancers (NSCLC) with Epidermal Development Issue Receptor (EGFR) mutations. The corporate will likely be internet hosting a most cancers R&D replace on October 19, 2023, to share particulars of its multipronged most cancers program based mostly on pioneering anti-CHI3L1 discoveries.

Ocean Biomedical is engaged within the improvement of therapeutic discoveries with the potential to realize life-changing outcomes in areas like most cancers, pulmonary fibrosis, and malaria. The corporate deploys the funding and experience to maneuver new therapeutic candidates effectively from the laboratory to the clinic, to the world. It has a promising pipeline of late-stage pre-clinical belongings in most cancers, malaria, and fibrosis.