ROVworld Subsea Information

Odyssey signs shipwreck project agreement
Date: Tuesday, March 29, 2011 @ 09:00:00 EDT

Odyssey signs shipwreck project agreementOdyssey Marine Exploration Inc., pioneers in the field of deep-ocean shipwreck exploration, has executed an agreement with Galt Resources, LLC under which Galt will have the right to participate in one of Odyssey's projects to be chosen by Galt during 2011.

Under the terms of the agreement, Galt will receive half the net proceeds, if any, from the selected project until Galt has recouped its initial investment plus three times the investment. Thereafter, Galt will receive a residual 1% of net proceeds for each $1 million invested. No commissions are being paid and none of Odyssey's securities will be sold or pledged under this agreement. The agreement is non-dilutive and will not result in an increase in total shares outstanding. The return to Galt is based solely on revenue participation from one project. Odyssey has received $5.6 million under this agreement and may opt to receive up to $10 million total.

"This agreement with Galt is a perfect complement to the project agreements already executed with clients of Robert Fraser & Partners over the past year, which allow us to offset upfront risk on a shipwreck project in return for sharing the project's back-end proceeds," explained Greg Stemm, Odyssey CEO. "The Galt agreement is a unique way to leverage our projects while minimizing long-term dilution for shareholders. 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."

This article comes from ROVworld Subsea Information

The URL for this story is: