Odyssey Marine Forms JV for Fertilizer Project, Secures Funding, Extends Debt Maturity Strategic
Odyssey Marine Exploration, Inc. a global leader in ocean exploration, has partnered with Capital Latinoamericano, S.A. de C.V. (CapLat) to form a joint venture (JV) aimed at developing a strategic fertilizer project. This collaboration follows extensive research and the validation of a high-quality phosphate resource within Mexico’s Exclusive Economic Zone (EEZ). The JV is set to focus on creating a private-public partnership with the Mexican government, promoting shared prosperity through sustainable agricultural practices. The initiative aims to empower local farmers, strengthen rural communities, and contribute to Mexico’s broader food security and agricultural self-sufficiency efforts.
The strategic importance of this project cannot be overstated. As Juan Cortina, principal of CapLat, noted, “A secure, high-quality domestic fertilizer supply can be transformative for North America’s agricultural foundation.” Cortina emphasized that the venture’s potential to reduce fertilizer costs for farmers and provide meaningful benefits to communities—especially small-scale farmers—can significantly improve rural development. With access to affordable fertilizers, the project will not only boost agricultural productivity but also help promote sustainable farming practices. CapLat is eager to collaborate with industry partners and the Mexican government to move this project forward.
Mark Gordon, CEO and Chairman of Odyssey, also expressed excitement about the partnership, highlighting its potential for long-term growth. “We are excited about the opportunities this partnership presents for Odyssey’s future growth,” he said. Gordon pointed out that the increasing demand for sustainable fertilizers makes this joint venture particularly timely. He further emphasized that over the past few years, Odyssey has worked closely with Mr. Cortina to align their visions and expertise. This partnership is a reflection of their shared commitment to advancing responsible resource development, which they believe will drive economic growth and agricultural progress in the region.
The collaboration between Odyssey Marine and CapLat leverages Odyssey’s deep expertise in subsea resource exploration with Mr. Cortina’s leadership in Mexico’s agricultural sector. Cortina has been a staunch advocate for innovation in food security and sustainability within Mexico. The project will utilize advanced technology and sustainable dredging techniques that have been successfully implemented in over 200 similar projects in Mexican waters. These methods are considered both effective and environmentally responsible, ensuring that the project will be executed with a focus on sustainability.
In addition to the joint venture announcement, Odyssey Marine Exploration revealed that it had entered into a securities purchase agreement to secure $4 million in funding. This investment was led by Mr. Cortina, along with holders of Odyssey Marine debt and the company’s lead director. The funding, priced at a premium to market with no warrants, reflects investors’ confidence in the project’s potential. The funds will be used to provide working capital and finance operations as the strategic fertilizer project moves forward.
This financial backing is a significant milestone for Odyssey as it looks to advance the project. In addition to securing new funding, Odyssey has also negotiated extensions for the maturity dates of certain debt notes. Specifically, the maturity of notes due in December 2024 has been extended to December 2025, and those due in June 2025 have been extended to April 2026. These adjustments are expected to provide Odyssey with additional financial flexibility as it progresses with the fertilizer initiative.
The joint venture has the potential to reshape the fertilizer landscape in Mexico and the broader North American agricultural market. By developing a reliable domestic phosphate supply, Odyssey Marine and CapLat aim to reduce dependency on imports and mitigate volatility in the fertilizer market. The collaboration also aligns with Mexico’s efforts to enhance food and nutrition security, part of a larger initiative aimed at achieving food and agriculture self-sufficiency.
The JV represents a forward-thinking approach to addressing the challenges facing the agricultural sector, particularly in terms of sustainability and cost-efficiency. With its innovative use of subsea resource exploration and a focus on responsible resource development, the project could significantly impact Mexico’s agricultural landscape, driving both economic growth and environmental stewardship.
Further details about the JV and the associated strategic transactions can be found in Odyssey’s Current Report on Form 8-K, filed on December 23, 2024, which is available to the public. This document provides additional information about the agreement and the company’s plans for the future of the project.
