Odyssey Marine Exploration, Inc. (NASDAQ: OMEX), a leader in ocean exploration, has announced a transformative joint venture (JV) with Capital Latinoamericano, S.A. de C.V. (CapLat), a prominent entity in Mexico’s agricultural sector. The collaboration aims to develop a strategic fertilizer project that leverages a high-quality phosphate resource discovered within Mexico’s Exclusive Economic Zone (EEZ). This initiative is poised to play a pivotal role in Mexico’s broader efforts to boost food security and strengthen self-sufficiency in agriculture.
Odyssey Marine Forms Joint Venture for Fertilizer Project, Enhances$100M Funding and Modifies Debt Terms
The primary objective of the JV is to establish a public-private partnership with the Mexican government, contributing to sustainable agricultural development while fostering economic prosperity. By increasing access to affordable, locally sourced fertilizers, the project aims to lower input costs for farmers, particularly small-scale Odyssey Marine operations, and drive rural development. The project’s potential to enhance agricultural productivity is aligned with Mexico’s ongoing efforts to improve food and nutrition security, a cornerstone of the nation’s agricultural self-sufficiency program.
Juan Cortina, principal of CapLat, emphasized the significant impact the project could have on the agricultural landscape of North America. “A secure, high-quality domestic fertilizer supply can be transformative for North America’s agricultural foundation,” he said. “This project has the potential to reduce costs for farmers and create meaningful benefits for communities, especially small-scale farmers. We are committed to exploring the opportunity to advance this Odyssey Marine project in close collaboration with industry stakeholders and the government.”
The JV capitalizes on Odyssey’s renowned expertise in subsea resource exploration, particularly in utilizing advanced technology and sustainable practices in the extraction of resources from the ocean floor. Odyssey’s experience in this field includes a track record of success in similar projects, providing a strong foundation for the current initiative. Mr. Cortina, with his deep involvement in Mexico’s agricultural sector, brings invaluable leadership and insight into promoting food security, sustainability, and innovative practices in agriculture.
The project will employ cutting-edge, sustainable dredging techniques that have been successfully implemented in over 200 similar operations within Mexican waters. These Odyssey Marine techniques ensure minimal environmental disruption while maximizing resource extraction efficiency. This commitment to sustainability is integral to the JV’s vision of responsible resource development that contributes to both economic growth and environmental stewardship.
Mark Gordon, CEO and Chairman of Odyssey, expressed his enthusiasm for the JV, highlighting the alignment of both companies’ goals. “We are excited about the opportunities this partnership presents for Odyssey’s future growth,” said Gordon. “The increasing demand for sustainable fertilizers makes this joint venture not only timely but essential. Over the past years, we have closely collaborated with Mr. Cortina to align our vision and expertise, and this partnership is a natural extension of our shared commitment to responsible resource development.”
As part of the JV’s development, Odyssey also secured $4 million in funding through a securities purchase agreement. The investment was led by Mr. Cortina, holders of Odyssey’s debt, and Odyssey’s lead director. Notably, the funding was priced Odyssey Marine at a premium to the market with no warrants attached. This capital infusion is a testament to investor confidence in the project’s potential and will be used to provide working capital for operations as the strategic initiative progresses.
In addition to the funding, Odyssey announced an extension of the maturity dates for certain debt notes. Holders of Odyssey’s debt have agreed to extend the maturity date of notes due in December 2024 to December 2025, and those due in June 2025 to April 2026. This extension ensures that the company will have the necessary time to develop the fertilizer project without immediate financial pressure.
The strategic fertilizer project marks a significant step forward for both Odyssey Marine Exploration and Capital Latinoamericano, offering a pathway to increased food security and agricultural sustainability in Mexico. By combining advanced subsea exploration techniques with a focus on sustainable resource management, the JV promises to deliver long-term benefits for farmers, communities, and the broader agricultural sector in North America. This collaboration exemplifies how public-private partnerships can play a crucial role in addressing global challenges such as food security, while simultaneously fostering economic growth and innovation.