Seeking Alpha

Meson Capital P...'s  Instablog

Meson Capital Partners
Send Message
We seek value plus multiple overlapping catalysts, sourced using proprietary tools. We will create our own catalysts with the fundamental goal to put assets to their highest and best use with the optimal financial structure to maximize long term business value. Founded in 2009 by Ryan J. Morris... More
View Meson Capital Partners' Instablogs on:
  • Meson Updates Odyssey Report: Undersea Mining And Commodity Wrecks Raise Red Flags
    Odyssey Marine Exploration Co (NASDAQ:OMEX):
    Do Investors Know What Lies Beneath the Surface? Part 2
    Meson Capital Partners, LLC, today publishes 30 pages of updated findings as part of its intensive investigation into Odyssey Marine Exploration ("OMEX" or "Company"). The update addresses OMEX's "response" to the initial report on the conference call November 5, 2013, which was not generally open to Q&A. Updates include in-depth research into the subsea mining business and the commodity shipwreck business. This updated report includes very pointed questions based on feedback from numerous whistle-blowers who came forward after our initial report.

    Full new report can be found at

    ​Summary Points of our New Report:
    • OMEX held their first conference call in approximately 2 years on November 5th to respond to our report. However, OMEX failed to give complete answer our questions or indicate even a single factual inaccuracy in our report and instead relied on distortionary public relations techniques, which we expose here.
    • OMEX's most recent 10-Q filed November 12th has numerous revisions that we highlight including that Neptune Minerals, Inc. - claimed as a source of $108mm of "off balance sheet value" - appears to have lost $25mm last year and as a result of these losses, we believe, may now be insolvent.
    • Further research into the Oceanica undersea mining project indicates that investors should be very skeptical of management claims that this is a "world-class" resource, an empty term used by numerous other failed mining companies we discuss.
    • OMEX has delayed its Commodity shipwreck business from end of 2013 to 2H 2014 according to its most recent 10-Q.
    • Despite claims as recent as August 8th of 600,000 oz of silver, OMEX discloses for the first time they have not found silver on the Mantola.
    • We believe the "four separate 20th-century shipwrecks" that OMEX touts are likely Nazi cargo ships and if so, we question how they could possibly have a valid cargo "rights secured under contract."

    Disclosure: I am short OMEX.

    Tags: OMEX
    Nov 15 11:08 AM | Link | 1 Comment
  • Investigative Report On OMEX Questions New Offshore Subsidiaries

    Meson Capital Partners, LLC, a leading activist fund manager, has been conducting an intensive investigation into Odyssey Marine Exploration ("OMEX" or "Company") over the past several months. The investigation is ongoing and utilizes publicly available information. Today, we are publishing our findings to date for the benefit of OMEX stockholders. We believe stockholders have been grossly misinformed about the Company's history, business affiliations, and prospects.

    Our 60-page report can be found at:

    We urge shareholders, journalists, and other interested parties to visit this website and contact us if they have any additional information.

    Summary Points of our Investigation:

    -- OMEX co-founders, Greg Stemm and John Morris are seasoned stock promoters whose previous company, Seahawk Deep Ocean Technologies (shwk:$0.0012) was subject to litigation by the SEC.

    -- Since 2000, OMEX executives and directors have been directly compensated over $20 million cash and have sold net $5 million of stock while shareholders have accumulated losses of $180 million.

    -- We believe UNESCO's new regulations that protect national gravesites and heritage make OMEX's business of for-profit historic shipwreck hunting unviable.

    -- We are investigating management representations regarding "$179 million of Off Balance Sheet Value Creation" and based on our findings to date, believe these values are inflated by at least a factor of 10 based on non-arm's length transactions.

    -- We question why OMEX recently formed offshore subsidiaries in Panama, Bahamas, and Mexico and are troubled by ties we discovered to questionable business partners.

    Shareholders Deserve Answers:

    -- Please explain precisely the business purposes of OMEX's offshore subsidiaries formed in 2013?

    -- Why did you choose to partner with DNA, Ltd. Inc. in Panama? Were you aware of the questionable track record of the principal members?

    -- Since leaving the Company in 2008, how much cash has OMEX co-founder John Morris and his affiliated entities been paid by OMEX?

    -- How much cash has OMEX received from John Morris and his affiliated entities?

    -- Has Josh Adam, SVP of Neptune Minerals and Manager of Mako Resources LLC, ever received compensation directly or indirectly from OMEX?

    About Meson Capital Partners, LLC

    Meson Capital Partners, LLC, based in San Francisco, is a research-driven activist fund manager founded in 2009.

    Disclosure: I am short OMEX.

    Tags: OMEX
    Oct 31 12:42 PM | Link | 1 Comment
Full index of posts »
Latest Followers


More »
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.