Odyssey Marine Exploration, Inc., a leader in the field of deep-ocean exploration, announced that it has delivered an additional closing notice for the Second Tranche of the financing that was previously announced in November 2011. The Company and the investor have agreed to a Second Tranche amount of $8 million.
Under the terms of the agreement, the indebtedness under the note for the Second Tranche is not convertible into equity for six months, during which time the Company has the right to redeem the note for 110% of the amount outstanding at the time of redemption. The note will bear interest at the rate of 9% per year.
“We plan to begin operations this quarter on three high-value recovery projects,” said Mark Gordon, Odyssey President and COO . “We’ve elected to enter this transaction to ensure that we are appropriately funded to commence recovery operations. Exercising our right to issue this tranche is consistent with our intent to fund projects with bridge financing designed to minimize equity dilution. The ability to prepay this tranche, combined with the previously announced increased loan with Fifth Third Bank, provides us with $10 million in funds without significant shareholder dilution.”
Akerman Senterfitt served as legal counsel to Odyssey in connection with this transaction.
Craig Hallum Capital Group LLC acted as the as exclusive placement agent on the transaction.
[mappress] Subsea World News Staff , April 30, 2012; Image: Odyssey