Odyssey discovered and developed the ExO Phosphate Project, one of the largest deposits of phosphate in the world. Launching in Spring 2023, the Odyssey ROV will meet the growing demand for deep-ocean ROV services in the Cook Islands and throughout the region. The equipment and technical experts working on it can carry out detailed surveys, capture high-resolution videos and images, and conduct mineral and environmental sampling critical to the research and exploration process. The company believes subsea phosphorite deposits and polymetallic nodule resources are two of the best options for near-term extraction.Īs part of our efforts, Odyssey plans to deploy a 6,000-meter Remotely Operated Vehicle (ROV) to support the company’s mineral programs in the coming months in the South Pacific region. Odyssey focuses on providing minerals for the future: critical mineral types that can be extracted economically with minimal environmental impact while offering the potential to provide an abundant source of minerals that will benefit society. Odyssey Operations Update: Minerals for the Future "Additionally, we believe that by removing this indebtedness and the overhang represented by the shares issuable under the SPA and convertible notes, this transaction is accretive to shareholders, makes Odyssey a more attractive investment, and allows Odyssey additional flexibility in achieving operational milestones in the development of subsea mineral projects." Jones, Odyssey’s Chief Financial Officer. These transactions represent a major milestone in reaching this goal," explained Christopher E. "We continue to focus on strengthening our balance sheet and making Odyssey’s capital structure more attractive to current and future stakeholders. "Terminating the SPA with AHMSA and the associated indebtedness clears the way for multiple other opportunities in the near to mid-term, from strategic investments to industry partnerships intended to increase the value of our mineral portfolio, create shareholder value, and provide access to critical minerals," said Mark Gordon, Odyssey’s Chief Executive Officer and Chairman of the Board. 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.Īs 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 funding that would require payment of an amount equal to four times the amount funded plus 1% of an award amount per million funded from any award by the NAFTA Arbitration tribunal. The 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. Taking into consideration the newly issued $14 million in notes, the net reduction in indebtedness (principal and interest) is $17.45 million. These 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. 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. To 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. 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. (NASDAQ: OMEX), a global subsea mineral exploration and development company, has reached an agreement with Altos Hornos de México, S.A.B. TAMPA, Fla., March 10, 2023-( BUSINESS WIRE)-Odyssey Marine Exploration, Inc.
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