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Meson Capital Partners

 
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  • Local Government, Fishing Coops Oppose Oceanica Don Diego Project
    Thu, Oct. 9 OMEX 46 Comments

    Summary

    • Now with Oceanica's EIA filed, environmental groups can comment on the claims made by OMEX.
    • The Mayor of Comondu, where the project is based, has now formally spoken out in opposition to the Oceanica project and supporting the Fisheries - will protest to the President.
    • Fisheries Cooperative Society Production Puerto Chale, an important Fishing coop and major contributor to the Baja economy is formally opposed to the project.
    • "We are completely against mining projects being established in this area, above all within our municipality, as it aggressively threatens the different marine species and ecosystems" - Mayor of Comondu.
    • At a minimum, it appears further scientific studies will be required to resolve important questions for both the fishing economy and the gray whale population impacts.
  • SSCA Salvage: 22 Double Eagles, No Ingots
    Tue, Sep. 16 OMEX 3 Comments

    Summary

    • The latest inventory sheet is now available on the SSCA Court website - total salvage was 22 double eagles, no ingots and some misc coins.
    • 22 Double Eagles allow OMEX to borrow $22,000 on their Fifth Third $10mm credit line, bringing the total net capacity up to $7.27mm today (net of $500k restricted cash).
    • Latest salvage is -99.3% smaller vs May-June period based on bank collateral value estimate - project seems finished now.
    • If treasure is sold as wholesale value in near term, could it cover the current debt?
  • Oceanica EIA Leaks In Mexico: Official Opposition Begins
    Mon, Sep. 8 OMEX 44 Comments

    Summary

    • According to local Mexican media, Oceanica's Environmental Impact Assessment (EIA) that has been repeatedly delayed by OMEX, leaked out on social media yesterday.
    • Detail highlighted: only 80 people required (2x shifts of 40) operating the ship to operate 24x7 for 50 years to dredge the phosphate - are any local jobs created?
    • Paradoxically, the marine field is given the name "Don Diego" which alludes to the conquest and subjugation of the New World by foreign powers, "Don Diego" cousin of Hernán Cortés.
    • Formal opposition document from the Advisory Council for Sustainable Development of the Northwest Region condemns the project citing numerous risks including "mass mortality" of marine life due to anoxic conditions.
    • Given that "dredging offshore phosphate has never been done anywhere in the world" according to this opposition communication, a rapid approval seems unlikely to us without extensive study.
  • SSCA August Salvage Declines 89% From June, Funds OMEX Losses 3 Days
    Sun, Aug. 17 OMEX 55 Comments

    Summary

    • Latest Salvage Inventory sheet: ~275 Double Eagles, ~35 oz of gold dust/nuggets and ~100oz misc small denomination coins, 89% LESS gold collateral vs May 19 –June 12 recovery.
    • Clearly no trace of “army gold” cache: zero ingots salvaged for the first time (vs 2 tiny ones in prior month).
    • Based on Fifth Third Loan Agreement, incremental double eagles should allow an additional cash draw on credit line of ~$275,000. Enough to fund OMEX operating losses for 3 extra days.
    • Inventory facts contradict promotional management statements on recent conference call. OMEX now insolvent and likely filing bankruptcy shortly unless vague “marketing agreement” debt closes soon.
    • Strategy Shift? Unnecessary early credit line draw to inflate Q2 cash balance and unprofitable SSCA efforts appear to be attempts to spite short sellers while impairing shareholders and creditors.
  • Odyssey's SEC 10Q: Out Of Cash In Weeks, Neptune Minerals Declines -94%
    Thu, Aug. 14 OMEX 32 Comments

    Summary

    • OMEX’s legal 10Q filed with the SEC paints a dramatically different and darker picture than the vague, hype-filled PR and conference call which is caveated by a safe harbor disclaimer.
    • Out of cash in weeks - Legal 10Q: “Our consolidated cash balance at June 30, 2014 was $5.7 million which is sufficient to support approximately two months of operations”.
    • Or Get ready for dilution - Legal 10Q: “We may enter into convertible debt deals... At times, conversion prices could be lower than market price of our common stock”.
    • Look out Mako & Oceanica - OMEX re-traded and crammed down junior securities at Neptune Minerals, officially valuing it at $1/share, a decline of 94% from $17.50 last reported.
    • $10mm marketing agreement “Binding LOI” (an oxymoron) hyped on the conference call has NOT closed and seems dubious as OMEX does not have title to SSCA coins.
  • Did Oceanica Have Permission From SEMARNAT For Core Sample Drilling?
    Wed, Jul. 30 OMEX 34 Comments

    Summary

    • New investigative report by local reporter in Mexico exposes Oceanica as not having environmental permits from SEMARNAT for the core sample drilling announced by OMEX.
    • According to a source on the ground, Daniel de Narváez, Oceanica Director, has repeatedly been cancelling meetings over the last month with local fishing coops and politicians.
    • Daniel de Narváez owns Oceanica stock via DNA Ltd Inc, a Panamanian corp using unnecessary proxy directors with alleged criminal connections we documented October 2013.
    • Marcos Covarrubias, Governor of Baja state pledges to protect the fishing industry from Oceanica.
    • July 29 OMEX PR hyping EIA does not even have a timetable for submission: We believe OMEX will file bankruptcy before EIA is filed - only weeks of cash remaining.
  • Oceanica Dying Fast: Mexico Senate Attacks
    Mon, Jul. 28 OMEX 21 Comments

    Summary

    • Mexican Senator Ricardo Barroso Agramon formally calls for Oceanica's mining concession to be revoked to avoid ecological effects.
    • Legislature: "There is already a large onshore phosphate deposit in Baja California Sur that produced 1.7 million tonnes in 2012 making this project unnecessary".
    • The site where OMEX claims to plan to begin phosphate mining is the Gulf of Ulloa, an area highly productive fisheries.
    • Appears doubtful that EIA will ever be filed now, OMEX trying desperately to raise money based on false hope with just a few weeks of cash in the bank.
  • Oceanica Looks Dead In The Water: Environmental Opposition
    Wed, Jul. 23 OMEX 37 Comments

    Summary

    • Six+ weeks and counting: EIA still not even filed despite OMEX management saying “Completed” at Annual Meeting, NI43-101 report also still not filed.
    • Pro-mining environmentalists and fishing organizations in Baja, Mexico are highly opposed to Oceanica despite EIA not even filed yet. Oceanica appears to overlap numerous commercial fishing concessions.
    • OMEX now in last ditch effort to raise capital by selling unregistered securities in Oceanica to pay for corporate cash burn before Oceanica could officially be shut down.
    • Last month of work at SS Central America only brought up <150 double eagles, credit line likely already tapped out: OMEX appears to be out of cash in August.
    • Large Strategic players already evaluated and passed on offshore phosphate mining in Mexico, not a new idea! Could recreate the Oceanica asset at nominal cost: will not buy Oceanica.
  • SSCA Inventory Unsealed: Confirms Disappointing Salvage, Meson's Estimates
    Thu, Jul. 17 OMEX 111 Comments

    Summary

    • SS Central America inventory matches Meson estimates posted July 10: ~5,000oz gold total, ~70/30 ingots/coins. ONLY ~150 1oz coins found in last month of work.
    • Fifth Third credit line borrowing capacity should max out at $7mm unrestricted cash now, confirms Meson estimates made July 10.
    • Project now appears incrementally unprofitable for further salvage, seems unlikely Odyssey Explorer will revisit the site.
    • Appears OMEXs only hope of surviving August is Oceanica’s roadshow but EIA still not filed and environmental opposition in Mexico is extremely strong due to undisclosed overlapping fishing concessions.
  • SS Central America Comes Up Short: Bankruptcy Countdown
    Thu, Jul. 10 OMEX 43 Comments

    Summary

    • SS Central America recovery coming up short: “only a few small containers” recovered over the last month: We now believe the project will be clearly unprofitable overall.
    • We model cash balance hitting zero, with likely corresponding required bankruptcy filing July 16th after mid-month payroll & bills are paid.
    • Oceanica EIA still not filed, local environmental opposition appears to be building strength.
    • Creditors and vendors likely to be impaired at this point given high liabilities and little bill-paying cash liquid assets, will get worse with time and continued cash burn.
  • Is Oceanica's EIA Deliberately Not Being Filed While Trying To Raise Capital?
    Tue, Jul. 8 OMEX 29 Comments

    Summary

    • OMEX announced June 4th that the Environmental Report (EIA) for Oceanica was “completed and ready to be filed shortly”: as it is STILL not filed, this is clearly deliberate.
    • We believe OMEX has chosen not to file the EIA because they know it will expose the project as environmentally and economically unviable: most mining projects die in this phase.
    • OMEX appears to be desperately attempting to raise capital to cover a current cash balance under $2mm that is likely to be zero soon, as cash burn remains $3mm/month.
    • An Oceanica capital raise would immediately be funneled to OMEX corporate to pay high compensation and ongoing cash burn, while diluting OMEX shareholders’ upside.
    • Management statements now backtracking JP Morgan involvement: definitively NOT assisting OMEX on a capital raise for Oceanica, only potential “strategic” deals, which we are highly doubtful of.
  • Odyssey Marine: Shrinking Cash Position Fails To Cover Current Bills, CEO Greg Stemm Must Go
    Tue, May. 13 OMEX 73 Comments

    Summary

    • OMEX cash declined by $25.8mm (to ~$6mm) in Q1 alone, after making required $13mm debt payments and >$10mm cash burn.
    • Estimated May 13th (today) cash position between $400k and $3.3mm fails to cover $6.5mm of current cash liabilities estimated due within 3 months.
    • OMEX appears to have converted some or all of $2,347,826 Additional Notes after March 31st into stock at ~$1.80/sh to preserve cash, contrary to CFO statements to repay in cash.
    • New $10mm Credit Line only can be drawn AFTER gold salvaged from SS Central America and appraised: unclear how OMEX can make July payroll without a rapid cash injection.
    • Drastic times require drastic action: OMEX Board needs to consider action to replace CEO Greg Stemm.
  • New Lawsuit From Investor Highlights Imploding Odyssey Marine-Related Private Company
    Mon, May. 12 OMEX 16 Comments

    Summary

    • New lawsuit from a large investor in Seagrass Recovery questions shell games: related-party transactions used to allegedly siphon money into insiders’ pockets.
    • Seagrass is run out of same office as Neptune Minerals under the same CEO: OMEX co-founder John Morris.
    • Josh Adam, SVP Finance at Neptune under CEO John Morris, raised $27.5mm for OMEX via Oceanica / Mako Resources LLC (via unregistered private securities).
    • We believe OMEX is desperate to raise capital and will require a massive discount to the current $2.06/share to close.
  • Do Mako Investors Realize Their Tenuous Security Position In Oceanica?
    Editors' Pick • Wed, Apr. 16 OMEX 33 Comments

    Summary

    • Mako Resources investors appear to have few rights to Oceanica assets due to senior OMEX payable security. Mako investors need to ask serious questions.
    • Did Josh Adam of Mako negotiate this transaction at arm's length with OMEX in line with his fiduciary duty?
    • Josh Adam, SVP Finance, used Highly Questionable brokers to raise capital for Neptune (OMEX's other mining venture), according to recent disclosures.
    • Is the vague J.P. Morgan Oceanica connection merely through a local Chase Private Client Florida branch attempting to sell unregistered securities to HNW investors?
  • What Happened To Neptune Minerals? Walls Appear To Be Closing In
    Mon, Mar. 17 OMEX 2 Comments

    Summary

    • Neptune Minerals and other OMEX-related private entities are imploding.
    • Not good for Oceanica which has yet to even commence the tough environmental permitting process: “Fool me once, shame on you, fool me twice, shame on me”.
    • We believe OMEX is desperately trying to raise equity capital.
  • No Secret Army Gold On The SS Central America, Short Sale Profits To Go To Charity
    Wed, Mar. 12 OMEX 46 Comments

    Summary

    • OMEX track record of 17 claimed ships: 14 did not materialize, 1 taken by government, 2 below expectations.
    • Thorough research on SS Central America conclusively indicates NO secret army gold stash and likely uneconomic project for OMEX.
    • I, Ryan Morris, pledge to donate personal OMEX short sale profits to charity.
  • Due Diligence On Odyssey's "Oceanica" Project Uncovers Numerous Undisclosed Risks
    Dec. 30, 2013 OMEX 37 Comments
  • Odyssey Marine's Smoking Gun: SS Gairsoppa Contract Facts From A U.K. Government FOI
    Dec. 10, 2013 OMEX 31 Comments
  • Snatching Defeat From The Jaws Of Victory: HMS Freedom Of Information Act UK
    Dec. 2, 2013 OMEX 15 Comments
  • Odyssey Marine: Do Investors Know What Lies Beneath the Surface? Part 2
    Nov. 15, 2013 OMEX 27 Comments
  • Investigative Report Questions Odyssey Marine's New Offshore Subsidiaries And Undersea Mining
    Nov. 3, 2013 OMEX 35 Comments