Odyssey Marine Exploration Executes Funding Transaction

Posted on Mar 30, 2016


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TAMPA, Fla., March 22, 2016 (GLOBE NEWSWIRE) — Odyssey Marine Exploration, Inc. (NASDAQ:OMEX), a pioneer in the field of deep-ocean exploration, has entered into an agreement with Epsilon Acquisitions LLC (Epsilon), under which it will receive a $ 3 million loan from Epsilon.  The loan has been structured as a one-year interest-bearing note, which is convertible at $ 5.00 per share, which is the volume-weighted average price of Odyssey’s common stock for the five trading day period ending on March 17, 2016. In related agreements, the Maturity Date of the existing note from Minera del Norte S.A. de C.V. (MINOSA) was extended until March 18, 2017, and Odyssey has agreed not to exercise its right to terminate the Stock Purchase Agreement (SPA) with Penelope Mining LLC, which is a subsidiary of MINOSA, until March 18, 2017.  The stand-alone call option held by MINOSA for Odyssey’s equity in Oceanica expired on March 11, 2016 and will not be renewed or extended.

“The Odyssey management team has been working closely with the MINOSA team throughout the past year,” said Mark Gordon, Odyssey’s chief executive officer. “Although the initial closing of the SPA has taken longer than originally contemplated due to the extended environmental approval process for the Oceanica project, the continued assistance provided by MINOSA and this recent agreement with Epsilon reinforces our belief that MINOSA is the right partner for Odyssey’s offshore mineral exploration business.” Under the terms of the SPA, which was announced March 13, 2015 and was approved by Odyssey stockholders, subject to the satisfaction of certain specified conditions, Penelope Mining agreed to invest up to $ 101 million over three years in convertible preferred stock of Odyssey at a split-adjusted price of $ 12 per share. Epsilon is an investment vehicle controlled by Mr. Alonso Ancira.  Mr. Ancira is also the executive chairman of Altos Hornos de Mexico S.A.B. de C.V. which is the owner of MINOSA.

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