Odyssey Marine gets 12% of Chatham Rock in charter payment
BUSINESSDESK: Odyssey Marine Exploration, the Nasdaq-listed marine explorer, has emerged as a 12.2% shareholder in Chatham Rock Phosphate after the company investigating the feasibility of mining rock phosphate from the seabed used shares to pay for the ship charter.
Odyssey Marine was issued with 9.3 million shares of Chatham Rock at 23 cents apiece. Cruise costs incurred under the charter agreement totalled $US5.7 million, of which $US4 million was settled in cash, the company said today.
“This is a positive development for CRP as it allows us to maintain working capital in order to fulfil our work programme,” managing director Chris Castle said. “We welcome Odyssey as a substantial shareholder.”
Shares of Chatham Rock last traded on the NZAX at 24 cents and have soared 41% this year.
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Comments and questions3
If all goes well with CRP, there should be some great upside. There is however some risk.
Of interest is the break up value of 20% shareholder , Widespread. One would expect a bit of interest in both of these companies in the near future as overseas investers start to get involved.Shareholders have had a long wait but may soon get rewarded.
A lot of capital raisings to do - expect to be dilluted massively and to have shares/options issued at great discount to the big boys.
This is a very very speculative play.
I hope they get it underway but this is not an investment for a pensioner.
Agree, a long way to go to get a payback on investment. The shareholders who were in at the beginning will have a smile on their faces as I seem to recall they were given(?) the shares from the then parent company, plus options that were listed.
Also there was/is a bit of debate around the current NTA.