Summary
Globalstar, Inc. has filed an 8-K report detailing significant developments, including receiving a Delisting Notice from The NASDAQ Stock Market. The company failed to meet the minimum bid price requirement of $1.00 per share and faces delisting unless an appeal is successful. The notice indicates that trading suspension could occur on September 20, 2012, with delisting from Nasdaq to follow. In parallel, Globalstar is making substantial investments in its future infrastructure. The company has entered into an agreement with Thales Alenia Space France for the manufacture and delivery of six additional satellites for its second-generation constellation, with a purchase price of €149.9 million. This significant capital expenditure is contingent on Globalstar securing financing for at least 85% of the contract value. Additionally, the company has resolved a dispute with Arianespace regarding launch campaign delays, the terms of which were announced via a press release.
Key Highlights
- 1Globalstar, Inc. received a notice from Nasdaq indicating its common stock will be delisted due to failing to maintain a minimum bid price of $1.00 per share.
- 2The company's securities were set to be suspended from trading on September 20, 2012, unless an appeal is filed.
- 3Globalstar intends to appeal Nasdaq's delisting determination.
- 4A hearing request, if filed by September 19, 2012, would stay the delisting action pending a decision.
- 5The company entered into a €149.9 million agreement with Thales Alenia Space France for six additional second-generation constellation satellites.
- 6The satellite purchase is conditional on Globalstar securing financing for at least 85% of the contract value.
- 7Globalstar has resolved a dispute with Arianespace concerning launch campaign delays.