Odyssey Marine Exploration Provides Update
14 Junho 2022 - 1:00PM
Business Wire
Odyssey Marine Exploration, Inc. (NASDAQ:OMEX), a global subsea
mineral exploration and development company, provided a corporate
update.
“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.”
The financing transaction provides approximately $15.0 million
of net proceeds to Odyssey and provides the following benefits:
- Ability 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.
- Allows 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.
- Proceeds from the financing will also be available to repay a
portion of the indebtedness owed to Minera del Norte, S.A. de
C.V.
- Provides 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 that is now progressing
through the UK court where a favorable determination is expected
within several months. The proceeds from this contract could
provide another year or more of operating capital and/or additional
deleverage of the company’s balance sheet.
- Allows Odyssey to provide targeted investment (Capex and Opex)
into key mineral projects in South America and the Pacific Islands.
Mineral validation is expected in these projects within the next
six to twelve months, focusing on Phosphate, Cobalt, and Nickel.
These investments are intended to increase the value of our mineral
portfolio assets by moving the projects up the value curve. CIC, a
company in which Odyssey currently holds a minority position, is
expected to begin offshore exploration later this month, and
current third-party investments into the project support a value
for Odyssey’s equity in CIC at over $60M.
“The last time we completed a registered direct offering was 22
months ago. As forecasted, that transaction funded our operations
through the completion of the NAFTA hearing, enabled us to expand
our ownership in existing projects and invest in the development of
new projects,” explained Gordon. “Since that last equity raise, we
removed $12.5M in debt from the balance sheet, increased our equity
in the ExO project from 53.5% to 56.3%, increased our equity in the
Lihir project from 79.9% to 85.6%, assisted CIC in their successful
exploration license application and added two new projects to our
portfolio that are being primed for the offshore exploration phase.
We believe that this latest transaction will allow us to continue
to increase the value of our diversified mineral portfolio and
deleverage our balance sheet, building additional stockholder
value.”
About Odyssey Marine Exploration Odyssey Marine
Exploration, Inc. (Nasdaq: OMEX) is a deep-ocean exploration
pioneer engaged in the discovery, validation and development of
subsea mineral deposits in a socially and environmentally
responsible manner. Odyssey’s growing project portfolio includes
different mineral sets in various jurisdictions around the world.
Odyssey also provides marine services for private clients and
governments. For additional details, please
visitwww.odysseymarine.com. An investor presentation is available
in the Investors section of the website.
Forward Looking Information
Odyssey Marine Exploration believes the information set forth in
this Press Release may include "forward looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995, Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Act of 1934. Certain factors that could cause
results to differ materially from those projected in the
forward-looking statements are set forth in "Risk Factors" in Part
I, Item 1A of the Company's Annual Report on Form 10-K for the year
ended December 31, 2021, which was filed with the Securities and
Exchange Commission on March 31, 2021. The financial and operating
projections as well as estimates of mining assets are based solely
on the assumptions developed by Odyssey that it believes are
reasonable based upon information available to Odyssey as of the
date of this release. All projections and estimates are subject to
material uncertainties and should not be viewed as a prediction or
an assurance of actual future performance. The validity and
accuracy of Odyssey's projections will depend upon unpredictable
future events, many of which are beyond Odyssey's control and,
accordingly, no assurance can be given that Odyssey's assumptions
will prove true or that its projected results will be achieved.
Cautionary Note to U.S. Investors
The U.S. Securities and Exchange Commission (SEC) permits mining
companies, in their filings with the SEC, to disclose only those
mineral deposits that a company can economically and legally
extract or produce. We use certain terms in this press release,
such as "measured," "indicated," "inferred" and "resources," which
the SEC guidelines strictly prohibit us from including in our
filings with the SEC. "Inferred mineral resources" have a great
amount of uncertainty as to their existence, and great uncertainty
as to their economic and legal feasibility. It cannot be assumed
that all or any part of an inferred mineral resource will ever be
upgraded to a higher category. U.S. investors are cautioned not to
assume that part or all of the inferred mineral resource exists, or
is economically or legally mineable, and are urged to consider
closely the disclosures in our Form 10-K which may be secured from
us or from the SEC's website at http://www.sec.gov/edgar.shtml.
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version on businesswire.com: https://www.businesswire.com/news/home/20220610005554/en/
Laura Barton Odyssey Marine Exploration, Inc. (813) 876-1776 x
2562 laura@odysseymarine.com
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