8-KShareholder Matters

Globalstar, Inc. 8-K Report, Shareholder Vote Results (May 26, 2010)

Filed May 26, 2010For Securities:GSAT

Summary

Globalstar, Inc. (GSAT) filed an 8-K on May 26, 2010, detailing the results of its Annual Meeting of Stockholders held on May 25, 2010. The meeting focused on three key agenda items: the election of directors, a ratification of stock issuance, and the appointment of an independent auditor. The company's management sought and received stockholder approval for these matters, indicating a general consensus and support from its shareholders on the company's governance and financial oversight. Of particular note for investors is the ratification of the issuance of common stock to Thermo Funding Company LLC. This transaction involved the conversion of approximately $2.4 million in debt into 2.5 million shares of nonvoting common stock. The overwhelming approval of this item suggests that shareholders viewed this as a positive step in reducing the company's outstanding debt and restructuring its capital. The election of directors and the ratification of the independent auditor also passed with significant support, reinforcing confidence in the current leadership and financial reporting practices.

Key Highlights

  • 1Globalstar's Annual Meeting of Stockholders on May 25, 2010, saw the election of two Class A Directors, J. Patrick McIntyre and Richard S. Roberts, both serving until the 2013 Annual Meeting.
  • 2Stockholders overwhelmingly ratified the issuance of 2,525,750 shares of nonvoting common stock to Thermo Funding Company LLC.
  • 3The stock issuance to Thermo Funding was in exchange for the extinguishment of $2,425,983.26 in outstanding debt, including accrued interest.
  • 4The appointment of Crowe Horwath LLP as Globalstar's independent registered public accounting firm for the fiscal year ending December 31, 2010, was ratified by stockholders.
  • 5Both director elections and the ratification of the Thermo Funding stock issuance received substantial 'For' votes, indicating strong shareholder support for these corporate actions.
  • 6Broker non-votes were a notable factor in the director elections, highlighting the importance of proxy voting by institutional investors.

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