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Odyssey Marine Exploration Announces Reduction of Debt & Potential Dilution That Is Accretive to Shareholders; Provides Updates on Company Projects and Progress
TAMPA, Fla.--(BUSINESS WIRE)-- Odyssey Marine Exploration, Inc. (NASDAQ: OMEX), a global subsea mineral exploration and development company, has reached an
About this update from Odyssey Marine Exploration, Inc.
[{"type":"text","content":"\n \n\n TAMPA, Fla.--(BUSINESS WIRE)--\nOdyssey Marine Exploration, Inc. (NASDAQ: OMEX), a global subsea mineral exploration and development company, has reached an agreement with Altos Hornos de México, S.A.B. de C.V., Minera del Norte S.A. de C.V. and Phosphate One LLC (collectively AHMSA) to terminate a 2015 Stock Purchase Agreement (SPA) and associated Notes and Pledge Agreements in return for a cash payment of $9.0 million and the issuance of 304,879 shares of Odyssey’s common stock.\n\nTo fund the termination and release agreement with AHMSA, Odyssey entered into a note and warrant purchase agreement with an institutional investor for the issuance of an 11% senior secured note in the principal amount of up to $14 million that will mature in September 2024 and a warrant to purchase up to 3,703,704 shares of Odyssey’s common stock at $3.78 per share. The company will use the funds available after the $9 million payment to AHMSA to pay legal fees and expenses related to the company’s pending NAFTA arbitration and the financing transaction, working capital, and other general corporate expenses.\n\nThese transactions removed approximately $32 million of principal and interest in indebtedness, comprising $24 million in senior secured notes and $8 million in senior secured convertible notes, from Odyssey’s balance sheet. Taking into consideration the newly issued $14 million in notes, the net reduction in indebtedness (principal and interest) is $17.45 million.\n\nThe termination and release agreement with AHMSA provides for the termination of the right to purchase 15.65 million shares of Odyssey’s convertible preferred stock under the SPA and the termination of the right to convert existing indebtedness into almost 1.9 million shares of Odyssey’s common stock. After giving effect to the issuance to AHMSA of the new shares of common stock and the warrant, the net effect of the transactions is to reduce by approximately 13.4 million shares the number of shares of common stock potentially issuable by Odyssey.\n\nAs part of the transaction, Odyssey and Exploraciones Oceánicas (ExO) obtained a waiver from Poplar Falls, LLC, the funder under the litigation financing for the NAFTA arbitration, to allow Odyssey and ExO to self-fund up to $5 million of any remaining NAFTA legal fees and expenses instead of incurring additional litigation...