Summary
Globalstar, Inc. (GSAT) announced a privately negotiated transaction where Thermo Investments II, LLC (“TI”) acquired 12,371,136 shares of Globalstar common stock from Thermo Funding II, LLC (“TF”) for $2.82 per share. This transaction was undertaken by TF for tax planning purposes related to gains recognized from the acquisition of tw telecom inc. by Level 3 Communications, Inc. Following this, TF and its affiliates retain a significant stake in Globalstar, holding approximately 770,000,000 shares on a fully diluted basis. The shares acquired by TI are restricted securities, and their resale will be registered via a Form S-3 filing, with no associated costs for Globalstar. Importantly, neither TF nor TI currently plan to dispose of their remaining shares, and this transaction does not affect Globalstar's status as a controlled company under NYSE MKT rules.
Key Highlights
- 1Thermo Investments II, LLC (TI) acquired 12,371,136 Globalstar shares from Thermo Funding II, LLC (TF) at $2.82 per share.
- 2The transaction was for tax planning purposes by TF related to its investment in tw telecom inc.
- 3TF and its affiliates retain a substantial holding of approximately 770,000,000 Globalstar shares (fully diluted basis).
- 4The acquired shares are restricted securities, requiring registration for resale via a Form S-3 filing at no cost to Globalstar.
- 5Neither TF nor TI have current plans to dispose of their respective shareholdings.
- 6The transaction does not alter Globalstar's status as a controlled company under NYSE MKT regulations.