Odyssey Marine Exploration Obtains up to $4.2M in Funding in Two Separate Transactions
December 12 2019 - 8:30AM
Odyssey Marine Exploration, Inc. (NASDAQ:OMEX), a pioneer in
the field of deep-ocean exploration, has obtained commitments for
up to $4.2 million in funding under two separate arrangements.
On December 6, 2019, Odyssey executed an
agreement with a group representing existing shareholders to
provide up to $2 million in funding as an advance against a portion
of multi-million-dollar payment Odyssey expects to receive within
the next six months. This payment is related to a previously
completed shipwreck project. The group provided $539,000 in
funding to Odyssey on December 10, 2019.
In addition, a term sheet has been executed and
definitive agreements are being drafted with the group that has
already committed up to $6.5 million in non-recourse legal funding
for the NAFTA action for up to an additional $2.2 million. Given
the significant management time and internal resources devoted to
the NAFTA case, the funder has agreed that this additional tranche
of funding may be used for Odyssey’s internal expenses directly
related to support of the arbitration.
“A group of existing shareholders presented us
an opportunity to factor a portion of an expected payment to
Odyssey,” said Mark Gordon, Odyssey Chief Executive Officer and
Chairman of the Board. “At about the same time, the group
responsible for the legal funding of our NAFTA action has agreed to
provide up to an additional $2.2 million pursuant to terms similar
to the current NAFTA legal funding.
“We appreciate the support of these groups who
are intimately familiar with the Odyssey team, business plan and
mid- to long-term outlook for the company. These two deals provide
the capital needed to advance our overall business plan and to
execute the initial phases of onsite operations on our Lihir
Offshore Gold project in the first half or 2020. Geological and
environmental surveys will be conducted to aid in the production of
a 43-101/JORC compliant resource estimate and environmental impact
assessment.”
The first agreement is a non-interest-bearing
six-month loan of up to $2.0 million. When the expected factored
payment is received by Odyssey, Odyssey is obligated to repay the
lender the amount outstanding plus a 55% factoring fee. The loans
will be convertible at the lender’s option at an initial conversion
rate of $5 per share of Odyssey common stock, subject to adjustment
and otherwise in accordance with the purchase agreement.
The other funding arrangement for up to $2.2
million will follow substantially the same terms as the current
NAFTA legal funding, except there will be an option to convert this
additional amount into Odyssey stock at current market prices. A
deposit of $500,000 has been received toward this amount.
About Odyssey Marine
ExplorationOdyssey Marine Exploration,
Inc. (Nasdaq:OMEX) is engaged in deep-ocean exploration using
innovative methods and state-of-the-art technology to provide
access to critical resources worldwide. Our core focus is the
discovery, development and extraction of deep-ocean minerals.
Odyssey also provides marine services for private clients and
governments. For additional details, please
visit www.odysseymarine.com.
Forward Looking
InformationOdyssey 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, 2018, which was filed with
the Securities and Exchange Commission on April 1,
2019. 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.
InvestorsThe 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.
CONTACT:Laura BartonOdyssey Marine Exploration,
Inc.laura@odysseymarine.com
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