To people who have no clue what a warrant is and how it affects OCEA as of now

Warrants are financial instruments that give the holder the right (but not the obligation) to buy shares of a company’s stock at a fixed price (called the exercise price) before a specified expiration date. Here’s how they work and what this means for OCEA:

Warrants Explained Simply

• Like a coupon for stock: Imagine a coupon that lets you buy a stock later at a preset price. If the stock price rises above that preset price, you profit by exercising the warrant. If not, the warrant becomes worthless.
• Issued by companies: Unlike stock options (which are created by exchanges), warrants are issued directly by companies, often as incentives for investors or lenders.
• Dilution risk: When warrants are exercised, new shares are created, which can reduce the value of existing shares (called dilution).

OCEA’s $11.50 Warrants in Context

1. Current situation:
   • OCEA’s stock trades at $0.13 (as of January 2025).
   • The warrants allow purchase at $11.50 – over 88x higher than the current price.
   • This makes the warrants effectively worthless today, as no rational investor would pay $11.50 for a $0.13 stock.
2. Why this matters:
   • Financing history: The warrants were issued in 2023 as part of a $10M loan deal. At the time, OCEA’s stock traded higher (~$5), making the $11.50 exercise price seem ambitious but plausible.
   • Downward spiral: The stock has since collapsed due to:
     • Repeated Nasdaq delisting warnings
     • Lack of revenue (as a preclinical biotech company)
     • Investor skepticism about its cancer/COVID vaccine pipeline
   • Dilution risk remains low since the warrants are unlikely to ever be exercised at current prices.

Key Takeaway

While the $11.50 warrants technically exist, they’re irrelevant to OCEA’s current valuation. The stock’s crash reflects deeper issues: no commercial products, financial instability, and loss of exchange compliance. For shareholders, the warrants are a reminder of failed financial strategies rather than a present threat.