Ocean Biomedical, Inc. (NASDAQ: OCEA), a biopharma company that works with research universities and medical centers to develop and commercialize their discoveries, Wednesday said it has entered into a non-binding term sheet with its largest stockholder, Poseidon Bio, LLC, for a proposed debt facility consisting of convertible promissory notes with a principal amount of up to $10 million. Poseidon Bio is majority-owned by Dr. Chirinjeev Kathuria.
The promissory notes may be issued in one or more closings. The company does not expect to draw the full amount at any one closing. The promissory notes under the proposed debt facility will be unsecured general obligations of Ocean, junior to the company’s existing senior lender, and will mature in one year following the issuance date.
There will be no restrictions on the use of proceeds and interest would be payable in cash. The conversion price will be $10.34 per share, subject to certain potential adjustments. Poseidon is expected to be provided warrant coverage, with the warrants to have an initial exercise price of $11.50 per share.
“Ocean Biomedical is thrilled with Poseidon’s continued support of the company as evidenced by this loan commitment. We look forward to finalizing the documentation and propelling Ocean Biomedical forward,” said Elizabeth Ng, Ocean’s chief executive officer.
A statement from Ocean this week revealed that its cancer-targeting immunotherapy antibody candidate has shown effective tumor reduction against an aggressive subset of Non-Small Cell Lung Cancer (NSCLC) with Epidermal Growth Factor Receptor (EGFR) mutations. The company will be hosting a cancer R&D update on October 19, 2023, to share details of its multipronged cancer program based on pioneering anti-CHI3L1 discoveries.
Ocean Biomedical is engaged in the development of therapeutic discoveries with the potential to achieve life-changing outcomes in areas like cancer, pulmonary fibrosis, and malaria. The company deploys the funding and expertise to move new therapeutic candidates efficiently from the laboratory to the clinic, to the world. It has a promising pipeline of late-stage pre-clinical assets in cancer, malaria, and fibrosis.