Odyssey Marine Exploration Forms Joint Venture to Advance Strategic Fertilizer Project, Secures Funding, and Extends Debt Maturity

Rhea-AI Summary

Odyssey Marine Exploration (NASDAQ: OMEX) has formed a joint venture with Capital Latinoamericano (CapLat) to develop a strategic fertilizer project in Mexico's Exclusive Economic Zone. The project aims to establish a public-private partnership with the Mexican government to promote sustainable agriculture and food security.

The partnership combines Odyssey's subsea exploration expertise with CapLat principal Juan Cortina's agricultural sector leadership. The project will utilize advanced technology and sustainable dredging techniques previously proven in Mexican waters.

Additionally, OMEX secured $4 million in funding through a securities purchase agreement, led by Cortina, debt holders, and Odyssey's lead director. The company also announced the extension of debt maturities, with notes due December 2024 extended to December 2025, and notes due June 2025 extended to April 2026.

Positive

• Secured $4 million in funding at premium to market without warrants
• Successfully extended debt maturities by 12-16 months
• Formed strategic partnership for fertilizer project development in Mexico

Negative

• Existing debt obligations requiring maturity extensions

Insights

Financial Analyst

This strategic joint venture and financing deal marks a pivotal transformation for OMEX. The $4 million funding at a premium without warrants signals strong investor confidence, particularly noteworthy given the company's micro-cap status. The debt maturity extension to 2025-2026 significantly improves OMEX's financial flexibility and reduces near-term liquidity pressure.

The Mexican phosphate project represents a substantial market opportunity. Mexico imports approximately $2 billion worth of fertilizers annually and establishing domestic production could capture significant market share. The partnership with CapLat, led by Juan Cortina, brings important local expertise and political connections essential for navigating Mexico's regulatory landscape.

The project's alignment with Mexico's food security initiatives enhances its strategic value and likelihood of government support. For a company with an $8.8 million market cap, successful execution could drive exponential value creation.

Agricultural Resource Expert

The strategic positioning of this phosphate project is particularly well-timed given the global fertilizer market dynamics. North American fertilizer security has become increasingly critical amid geopolitical tensions affecting traditional supply chains. Mexico's current reliance on imported fertilizers creates a compelling case for domestic production.

The project's focus on small-scale farmers is strategically sound. Mexico has approximately 5.5 million small-scale agricultural producers who struggle with fertilizer costs. A domestic source could significantly reduce input costs through eliminated transportation expenses and import tariffs. The sustainable dredging approach, validated through 200+ similar projects in Mexican waters, mitigates environmental concerns while ensuring operational feasibility.

TAMPA, Fla.--(BUSINESS WIRE)-- Odyssey Marine Exploration, Inc. (NASDAQ: OMEX), a global leader in ocean exploration, and Capital Latinoamericano, S.A. de C.V. (CapLat) have announced a joint venture (JV) to develop a strategic fertilizer project. Building on extensive research and validation of a high-quality phosphate resource within Mexico’s Exclusive Economic Zone (EEZ), the JV seeks to establish a private-public partnership with the Mexican government, promoting shared prosperity through sustainable agriculture that empowers farmers and strengthens local communities. The potential project seeks to contribute towards the food and nutrition security efforts currently pursued by Mexico as part of a broader food and agriculture self-sufficiency program initiative.

"A secure, high-quality domestic fertilizer supply can be transformative for North America’s agricultural foundation,” said Juan Cortina, principal of CapLat. “This project has the potential to lower costs for farmers and bring meaningful benefits to communities—particularly small-scale farmers—by increasing access to affordable fertilizers and fostering rural development. We are looking forward to exploring the opportunity to move the project forward in collaboration with industry and the government.”

“We are excited about the opportunities this partnership presents for Odyssey’s future growth,” said Mark Gordon, CEO and Chairman of the Board of Odyssey. “The increasing demand for sustainable fertilizers makes this joint venture both timely and essential. Over recent years, we have collaborated closely with Mr. Cortina to align our vision and expertise, and this partnership reflects our shared commitment to advancing responsible resource development that drives economic growth and agricultural progress.”

The partnership combines Odyssey’s subsea resource exploration expertise with Mr. Cortina’s leadership in Mexico’s agricultural sector, where he has championed innovation, food security, and sustainability. The project will employ advanced technology and proven sustainable dredging techniques, which have been successfully used in over 200 similar projects in Mexican waters by a local operating partner for the project.

Odyssey also announced that it had entered into a securities purchase agreement pursuant to which Odyssey secured $4 million in funding. The investment was led by Mr. Cortina, holders of Odyssey’s debt, and Odyssey’s lead director. It was priced at a premium to market with no warrants. The funding reflects the investors’ confidence in the joint venture's potential and will provide working capital and funding for operations as the strategic project is developed. Separately, holders of Odyssey’s debt have agreed to extend the maturity date of notes due December 2024 to December 2025 and notes due June 2025 to April 2026. Further information about the JV and these strategic transactions can be found in Odyssey’s Current Report on Form 8-K filed on December 23, 2024, available at www.odysseymarine.com or https://www.sec.gov.

About Odyssey Marine Exploration

Odyssey Marine Exploration, Inc. (NASDAQ: OMEX) is a global leader in ocean exploration with over 30 years of experience. The company is committed to the sustainable and responsible discovery, validation, and advancement of seafloor critical mineral projects, including polymetallic nodules for battery metals and subsea phosphate deposits for fertilizers. Offering comprehensive research, marine operations, and regulatory compliance support, Odyssey works with governments and seafloor rights holders worldwide. Odyssey develops its projects in collaboration with a global network of partners, academics, and industry professionals who share its commitment to environmentally sound solutions to obtain minerals that will address present and future global challenges. Learn more at www.odysseymarine.com.

About Mr. Juan Cortina

Mr. Cortina is the Chairman of the Board and Executive President of Siembra (www.gruposiembra.com.mx), a diversified agri-food platform in North America dedicated to creating added value, leveraging top talent, and positively impacting the communities and ecosystems in which it operates four core business units: field, sugar, circular economy and logistics. He is also the Chairman of the Board and founder of a company specializing in producing cucumbers, tomatoes, and peppers grown in high-tech greenhouses in the Bajio region, essentially for export to the United States. Since 2021, Mr. Cortina has served as the President of the Consejo Nacional Agropecuario (www.cna.org.mx), an organization that represents, defends, and promotes Mexico's agriculture and food sectors. The organization accounts for more than 80% of Mexico's agri-food GDP and 10% of the country's total exports. Mr. Cortina is also a member of the Board of Directors of CIMMYT (www.cimmyt.org), a cutting-edge, non-profit, international organization dedicated to addressing global challenges through crop and food science.

Additionally, he serves on the Board of Directors of Santander Mexico. He is a member of the International Advisory Council at Rabobank. Mr. Cortina is committed to driving innovation, growth, and sustainability in Mexico. He creates value by fostering synergies across strategic investments, primarily in the agricultural industry, while maintaining a strong commitment to excellence, productivity, efficiency, and sustainability.

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, 2023, which was filed with the Securities and Exchange Commission on May 17, 2024. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241226059894/en/

Liz Shows

Odyssey Marine Exploration, Inc.

(813) 876-1776

lshows@odysseymarine.com

Source: Odyssey Marine Exploration, Inc.

FAQ

What is the purpose of OMEX's joint venture with Capital Latinoamericano?

The joint venture aims to develop a strategic fertilizer project in Mexico's Exclusive Economic Zone, focusing on sustainable agriculture and food security through a public-private partnership with the Mexican government.

How much funding did OMEX secure in December 2023?

OMEX secured $4 million in funding through a securities purchase agreement, priced at a premium to market with no warrants.

What are the new maturity dates for OMEX's debt notes?

The notes originally due December 2024 were extended to December 2025, and notes due June 2025 were extended to April 2026.

What technology will OMEX use for the Mexican fertilizer project?

The project will employ advanced technology and sustainable dredging techniques that have been successfully used in over 200 similar projects in Mexican waters.

Who led the $4 million investment in OMEX?

The investment was led by Juan Cortina (CapLat principal), holders of Odyssey's debt, and Odyssey's lead director.