Deep-ocean explorer Odyssey Marine Exploration Inc. announced Wednesday it has sold intangible and tangible assets related to its shipwreck business for $21 million.
California-based Monaco Financial LLC and affiliated entities purchased the assets, according to a statement.
Included in the deal are all of Odyssey's bank debt, totaling $11.7 million; $2.2 million of Odyssey's debt owed to Monaco Financial is retired; $5 million of this debt ceases to accrue; a $1 million loan from Monaco was retired; and a further $1 million in case was provided for general corporate uses; according to the statement.
Odyssey will retain a 21.25 percent interest in the future net proceeds from shipwreck projects as part of the deal, and holds an exclusive contract to provide shipwreck search and recovery services, according to the statement.
Other assets sold include one-half of the company's interest in Neptune Minerals Inc., and the building where Odyssey's executives offices are located. Odyssey's Tampa office is located at 5215 W Laurel St.; an Odyssey spokeswoman confirmed that is the building sold as part of the deal.
Mark Gordon, Odyssey's CEO, had this to say about the 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. 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 companies’ commitment to continue to conduct appropriate archaeology on historical shipwreck projects including education, publication and exhibits.”
Earlier this year, Tampa-based Odyssey (NASDAQ: OMEX) signed a funding deal with Minera del North S.A. de c.v., or Minosa, in which Minosa agreed to provide short-term debt financing to Odyssey of up to $14.75 million. A subsidiary also agreed to invest up to $101 million over three years in Odyssey's convertible preferred stock, according to previous reporting.
Courtesy: Tampa Bay Business Journal