Odyssey Marine Exploration Secures Strategic Debt Financing Deal
December 04 2023 - 6:04PM
Business Wire
Odyssey Marine Exploration, Inc. (NASDAQ: OMEX), a global subsea
mineral exploration, validation, and development company, reported
today that it took a significant financial step by entering into a
note and warrant purchase agreement with several of the company's
largest institutional investors on December 1, 2024.
Led by Two Seas Capital, the investors include Four World
Capital Management, Greywolf Capital Management, and DP Special
Opportunities Fund I, LLC. The facility provides the company with
capital to allow it to continue to execute project plans and
strategic initiatives through the first quarter of 2024.
“At Two Seas, we specialize in investments in companies with
unappreciated, high-value litigation events. That is what attracted
us to Odyssey, a company with a strong NAFTA arbitration claim
against the United Mexican States. Subsea mineral resources can be
an important contributor to sustainable solutions for the world,
and the ExO Project could have supported Mexico’s food security
needs for a generation,” said Sina Toussi, Founder and Chief
Investment Officer of Two Seas Capital. “What has been made clear
to us is that Mexico acted against the interests of the Mexican
people and in violation of its commitments under NAFTA in blocking
this project. This funding will bridge Odyssey to what we believe
will be a just judgment in the arbitration and position Odyssey to
pursue several new high-value projects that will address supply
constraints for battery metals, phosphate (a necessary component
for fertilizer) and other scarce resources in a sustainable
way.”
"Based on our belief in the mission and strategy of Odyssey,
Four World Capital Management has built a sizeable position in the
company, which is developing global projects aimed at supplying
essential battery metals for the global clean energy transition and
phosphate, a vital component crucial to fertilizer production. We
have participated in every funding transaction the company has
offered over the past two years, and we are pleased to be involved
in this initiative by offering funding to maximize the company's
potential for success," said John Addis, Four World Capital
Management's Founder and Chief Investment Officer.
"As the lead litigation funder in Odyssey’s NAFTA arbitration
claim, Drumcliffe is pleased to contribute additional capital to
the company in order to support their pursuit of justice. We
continue to believe in the strong merits of the claim and Odyssey’s
entitlement to compensation as the result of Mexico’s arbitrary and
unfair treatment in breach of international law,” added James C.
Little, CEO of Drumcliffe, “We look forward to the arbitration
panel’s decision in early 2024.”
The agreement provides for the issuance of promissory notes with
an 11.0% annual interest rate, totaling up to $6.0 million, and
warrants that allow them to purchase shares of Odyssey's common
stock over the next three years. Odyssey will use the funds
acquired through this facility for various purposes, including
supporting day-to-day operations, covering general corporate
expenses, and managing fees associated with the agreed-upon
transactions.
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 provides marine
services for private clients and governments interested in
exploring their Exclusive Economic Zone (EEZ) to survey, map, and
identify any potential mineral resources. The company focuses on
the exploration of polymetallic nodules (battery metals to power
the future) and subsea phosphate deposits (fertilizer to feed the
future), which the company believes will provide a benefit to
society now and in the future, For additional details, please visit
www.odysseymarine.com.
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, 2022, which was filed with the Securities and
Exchange Commission on March 31, 2023. 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.
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Liz Shows Odyssey Marine Exploration, Inc. (813) 314-2335
lshows@odysseymarine.com
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