Odyssey Marine Exploration Retains Exclusive Contract and Retires Debt with $21 Million Deal

Spotlight Companies |

Odyssey Marine Exploration, Inc. (OMEX), a company engaged in deep-ocean exploration using innovative methods and state of-the-art technology for shipwreck projects and mineral exploration, has sold certain intangible and tangible assets primarily related to its shipwreck business in a milestone $21 million deal.

“This agreement allows Odyssey to immediately monetize shipwreck assets, continue to perform world-class deep-ocean shipwreck search, archaeology and recovery, and to retain upside potential from the assets we’ve created over the past 20 years,” said Mark Gordon, CEO of Odyssey Marine Exploration. “I’ve stated for the past nine months that although we intended to focus corporate capital on the mineral exploration side of the business, we do not intend to abandon our shipwreck roots. We wanted to lower our risk profile on the shipwreck projects by utilizing external project level financing, and this agreement achieves all of those objectives. In addition to the financial arrangements, we are pleased with the acquiring company's’ commitment to continue to conduct appropriate archaeology on historical shipwreck projects including education, publication and exhibits.”

Purchased by Monaco Financial, LLC and affiliated entities, the $21 million deal includes the following:

  • Odyssey will retain a 21.25% interest in the future net proceeds from shipwreck projects and an exclusive contract to provide shipwreck search and recovery services.
  • All of Odyssey’s bank debt, which totaled $11.7 million, was repaid in full. This debt had a maturity date of December 17, 2015.
  • $2.2 million of Odyssey’s debt owed to Monaco Financial was retired. A further $5 million of this debt ceases to accrue interest and is only repayable under certain circumstances and only from future proceeds from specifiedshipwreck projects.
  • A $1 million loan from Monaco Financial (October 2015) was retired.
  • A further $1 million in cash was provided to be used for general corporate uses.

Last month, the company released Q3 2015 results, revealing a number of highlights for the company. Through active cost management efforts, the company reduced operating expenses and improved the net result. Furthermore, the company increased revenues by 95% or more as a result of increased inventory sales of coins when comparing the three months ended and nine months ended September 30, 2014, and 2015, and successfully renegotiated the terms of several loans with the company's bank and with MINOSA in order to postpone loan repayments that would have been otherwise due in the third quarter.

Through strategic initiatives, Odyssey Marine Exploration is successfully transforming the shipwreck side of their business. This landmark multi-million dollar deal will allow the company to continue pioneering in the field of deep-ocean exploration and retain a financial interest in future shipwreck projects.

For more information about Odyssey Marine Exploration, visit www.odysseymarine.com.

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Companies

Symbol Name Price Change % Volume
OMEX Odyssey Marine Exploration Inc. 3.53 -0.24 -6.37 57,085

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