Summary
This 8-K filing from Globalstar, Inc. on December 13, 2013, details the company's issuance of unregistered equity securities to Hughes Network Systems LLC (Hughes), a subsidiary of EchoStar Corporation. This issuance was part of an agreement where Hughes could elect to receive Globalstar's common stock instead of cash for certain milestone payments related to ground network equipment and software upgrades. The filing discloses two separate issuances to Hughes: one on November 18, 2013, for approximately $4.3 million worth of stock, and a subsequent one on December 13, 2013, for approximately $10.1 million worth of stock. These issuances were conducted as private placements exempt from registration under Section 4(2) of the Securities Act of 1933. Globalstar has agreed to file a registration statement for the resale of these shares by Hughes.
Key Highlights
- 1Globalstar issued approximately $10.1 million of its voting common stock to Hughes Network Systems LLC on December 11, 2013, as an unregistered private placement.
- 2This issuance was in lieu of cash payments for milestone obligations under a prior contract.
- 3This follows a previous issuance of approximately $4.3 million in Globalstar stock to Hughes on November 18, 2013.
- 4The shares were issued at $1.60 per share in the December issuance and $1.35 per share in the November issuance.
- 5The issuances are exempt from registration under Section 4(2) of the Securities Act of 1933.
- 6Globalstar has committed to filing a registration statement to allow Hughes to resell the issued shares.