Surendra Ajjarapu
About Surendra Ajjarapu
Independent director (Class III) with extensive SPAC, healthcare, and energy leadership experience; age 53; joined the ASBP board in August 2023. Education includes an M.S. in Environmental Engineering (South Dakota State University), MBA in International Finance & Management (University of South Florida), and completion of the Venture Capital & Private Equity program at Harvard University . Current role history lists CEO/Chairman of TRxADE HEALTH, Inc. (Nasdaq: MEDS) and multiple SPAC boards; at ASBP he is classified as a Class III director with term expected to expire at the 2027 annual meeting .
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Aemetis, Inc. (Nasdaq: AMTX) | Founder; President and Director | 2006–2009 | Built biofuels platform; led International Biofuels subsidiary |
| International Biofuels (Aemetis subsidiary) | Founder; Chairman & CEO | 2006–2009 | Led subsidiary operations |
| Sansur Renewable Energy, Inc. | Founder; CEO & Chairman | 2009–2012 | Developed wind power sites in Midwest U.S. |
| Global Information Technology, Inc. | Co‑Founder; COO; Director | Prior period not dated | IT outsourcing/systems design; U.S./India footprint |
External Roles
| Organization | Role | Public Listing | Tenure/Status |
|---|---|---|---|
| TRxADE HEALTH, Inc. | Chairman, CEO & Secretary | Nasdaq: MEDS | Ongoing since July 2010 |
| Kernel Group Holdings, Inc. | Chairman of Board | Nasdaq: KRNL | Since Dec 2022 |
| Semper Paratus Acquisition Corp. | Chairman of Board | Nasdaq: LGST | Since Jun 2023 |
| Oceantech Acquisition I Corp. | Director | Nasdaq: OTEC | Since Mar 2023 |
| Aesther Healthcare Acquisition Corp. | CEO & Chairman (completed de‑SPAC Feb 2023) | — | De‑SPAC; now director at Ocean Biomedical, Inc. (Nasdaq: OCEA) |
| Ocean Biomedical, Inc. | Director | Nasdaq: OCEA | Current |
| Kano Energy Corp. | Executive Chairman | Private | Since Mar 2018 |
Board Governance
- Board classification: Class III director; term expected to expire at the 2027 annual meeting .
- Independence: Board has determined independent directors are Gary E. Stein, Donald G. Fell, and Michael C. Howe; Ajjarapu is not listed as independent .
- Committee assignments: Audit (Stein—Chair, Howe, Fell), Compensation (Howe—Chair, Stein, Fell), Nominating & Corporate Governance (Fell—Chair, Stein, Howe); Ajjarapu is not a member of these committees .
- Independent director sessions: Independent directors will have regularly scheduled meetings (frequency not specified) .
- Attendance rate: Not disclosed in available filings.
Fixed Compensation (Director)
| Component | FY 2024 Amount |
|---|---|
| Annual cash retainer | $0 |
| Committee membership fees | $0 |
| Committee chair fees | $0 |
| Meeting fees | $0 |
None of ASBP’s non‑employee directors received cash compensation for services rendered (FY 2024) .
Performance Compensation
- Equity awards to directors: Not disclosed for Ajjarapu in FY 2024 .
- Plan infrastructure: ASBP adopted a 2024 Omnibus Incentive Plan permitting options, SARs, restricted stock/units, performance awards, dividend equivalents, and other equity-based awards, with explicit clawback and no‑repricing provisions without shareholder approval .
- Clawback: Company maintains a clawback policy applicable to awards and compensation recovery, with mandatory recoupment under policy/law .
- Performance metrics: Committee may set financial or operational goals for performance awards (e.g., company/unit performance, individual goals) .
Other Directorships & Interlocks
- Multiple concurrent SPAC roles (KRNL, LGST, OTEC) and director role at Ocean Biomedical may create interlocks across capital markets, advisory relationships, and transaction flow, though no specific related‑party transactions at those entities are disclosed in ASBP’s filings .
- ASBP sponsor (SRIRAMA Associates, LLC) is managed by Ajjarapu, with significant holdings and financing ties to ASBP (see Related‑Party and Equity Ownership) .
Expertise & Qualifications
- Technical/operational: Engineering background; extensive experience in healthcare, biofuels, and renewable energy ventures .
- Capital markets: SPAC formation and execution, equity financing, and governance across multiple public companies .
- Board qualifications: Not designated as audit committee financial expert; not listed as independent; not seated on audit/comp/nom‑gov committees .
Equity Ownership
| Snapshot Date | Shares Beneficially Owned | % of Shares Outstanding | Notes |
|---|---|---|---|
| Mar 26, 2025 | 11,151,833 | 21.1% | Includes 4,317,500 common shares and 6,834,333 shares underlying private placement warrants exercisable within 60 days; held via SRIRAMA Associates, LLC (sponsor); Ajjarapu is managing member |
| Sep 10, 2025 | 1,121,736 | 2.3% | Held via SSVK Associates, LLC, Sandhya Ajjarapu Revokable Trust 2007, and Sea Rider Capital, LLC; excludes 6,834,333 warrant shares |
- Shares pledged as collateral: Not disclosed.
- Stock ownership guidelines: Not disclosed.
- Section 16 compliance: Filings for officers/directors believed timely based on furnished forms .
Related‑Party Transactions and Potential Conflicts
- Sponsor purchase from Original Sponsor: SRIRAMA Associates (sponsor managed by Ajjarapu) purchased 4,317,500 Class A shares and 6,834,333 private placement warrants for an aggregate price of $1.00, payable at business combination close; sponsor assumed Original Sponsor obligations .
- Loans routed via affiliates: Loan and Transfer Agreements—SSVK Associates, Apogee Pharma, and Jinal Sheth funded the Sponsor, which then loaned proceeds to the Company; outstanding borrowings under these arrangements and “Due to affiliate” balances are disclosed (e.g., $358,939 due to affiliate at 12/31/2024) .
- Convertible/subscription financing: Company entered subscription agreements and notes with outside investors; fair value changes and debt discounts materially impacted FY 2024 results, indicating reliance on structured financing; although not directly tied to Ajjarapu personally, his sponsor role and financing intermediation highlight potential influence over capital structure .
- Governance mitigation: Audit Committee pre‑approves related‑party transactions and oversees conflicts per charter, but Ajjarapu’s non‑independent status and sponsor control—combined with substantial ownership—represent a structural conflict risk requiring robust oversight .
Governance Assessment
- Strengths: Significant founder/operator and public company experience; material ownership aligns incentives; robust equity plan with clawback and no‑repricing protections; independent audit/comp/nom‑gov committees in place .
- Concerns/RED FLAGS:
- Non‑independent status (not among board‑designated independent directors) .
- Sponsor control and financing intermediation by entities linked to Ajjarapu (SSVK/SRIRAMA), with material share/warrant holdings and related‑party loans—creates potential conflicts in capital allocation, dilution decisions, and transaction terms .
- Multi‑SPAC leadership and simultaneous public company roles heighten interlock and time‑allocation risks; careful monitoring of recusals and conflict‑management processes is warranted .
- Director compensation transparency is limited (no cash compensation disclosed; equity grants to directors not enumerated), reducing clarity on pay‑for‑performance alignment at the board level .
Net: Ajjarapu’s deep market experience and large ownership stake can be positive signals for alignment and execution; however, his sponsor leadership, non‑independent board status, and financing relationships constitute meaningful governance risk factors that investors should monitor, especially around dilutive financings, related‑party transactions, and board decision‑making processes .