Business
Odyssey Marine Exploration Provides Update
TAMPA, Fla.--(BUSINESS WIRE)-- Odyssey Marine Exploration, Inc. (NASDAQ:OMEX), a global subsea mineral exploration and development company, provided a
About this update from Odyssey Marine Exploration, Inc.
[{"type":"text","content":" TAMPA, Fla.--(BUSINESS WIRE)--\nOdyssey Marine Exploration, Inc. (NASDAQ:OMEX), a global subsea mineral exploration and development company, provided a corporate update.\n\n“On Friday, we closed a registered direct offering of equity securities that will allow us to continue to deleverage our balance sheet while also providing capital for Odyssey’s ongoing operations through the next nine to 18 months, bridging us to anticipated significant cash flows. We expect this financing to carry Odyssey through a decision on our NAFTA arbitration and provide the cash to self-fund a portion of the NAFTA litigation,” stated Mark Gordon, Odyssey Chairman and Chief Executive Officer. “Additionally, the capital will provide for targeted investments in key mineral projects that will help power the Green Economy.”\n\nThe financing transaction provides approximately $15.0 million of net proceeds to Odyssey and provides the following benefits:\n\n\nAbility to self-fund some NAFTA litigation expenses versus utilizing existing litigation funders. This $2B+ claim against Mexico under NAFTA relates to the illegal denial of the environmental permit for a subsidiary’s offshore phosphate project. Having completed hearings before the NAFTA Tribunal, Odyssey management is increasingly confident in the outcome of the litigation and would prefer to self-fund expenses to maximize the amount of any award to Odyssey.\n\n\n\nAllows for final payment of $2.5 million to satisfy a portion of the indebtedness associated with our legacy business. As previously announced, $14.5M in principal and accrued interest outstanding under various notes were repaid with $9.5M in cash and shares of stock. The final $2.5M (included in the $9.5M total repayment) included a conversion feature that will no longer be exercisable. Even after considering the pricing associated with this transaction, the payoff is accretive to stockholders with Odyssey achieving a 34% discount on the overall retirement of $14.5M in debt.\n\n\nProceeds from the financing will also be available to repay a portion of the indebtedness owed to Minera del Norte, S.A. de C.V.\n\n\nProvides operating capital for Odyssey through the next nine to 18 months. Within this timeframe, Odyssey expects to have a decision on our +$2B NAFTA case. Additionally, a significant cash inflow from proceeds of a salvage contract...