Loading
TAMPA — Odyssey Marine Exploration Inc. (symbol: OMEX) has entered into a financing arrangement with Galt Resources LLC that will help the Tampa firm cover its up-front costs. The deep-ocean exploration company in search of long-lost treasure has already obtained $5.6 million from Galt through the deal, and that investment could grow to $10 million.
In exchange for the financing, Galt — which is run by former Odyssey CEO John Morris — will take half the proceeds from the Odyssey project of its choosing (the project must be chosen before the fact), up until it is paid back an amount four times its original investment. After that, Galt will take 1% of all additional proceeds for every million dollars it invests up front.
"The Galt agreement is a unique way to leverage our projects while minimizing long-term dilution for shareholders,” said current Odyssey CEO Greg Stemm. “Overall this is less dilutive project financing than we have received on previous projects and reflects a new model for offsetting risk and leveraging the value reflected in our portfolio of projects."
Headquartered in Tampa, Odyssey Marine Exploration Inc. earned $1 million in profits in the third quarter of 2010, the result of $9.8 million in revenues.
Your free article limit has been reached this month.
Subscribe now for unlimited digital access to our award-winning business news.
Join thousands of executives who rely on us for insights spanning Tampa Bay to Naples.
