Summary
Globalstar, Inc. (GSAT) filed an 8-K on August 31, 2015, disclosing the completion of a $15 million stock purchase by Terrapin Opportunity, L.P. This transaction, part of a larger $75 million Common Stock Purchase Agreement established on August 7, 2015, provides Globalstar with approximately $14.9 million in net proceeds after expenses. This funding was a condition under the Second Global Amendment and Restatement Agreement, requiring settlement by August 31, 2015. The issuance of these shares is subject to the terms of the Purchase Agreement, which allows Globalstar to require Terrapin to purchase up to $75 million of its common stock over a 24-month period. The filing also includes an opinion from Globalstar's counsel, Taft Stettinius & Hollister LLP, regarding the stock issuance as Exhibit 5.1.
Key Highlights
- 1Globalstar received $15 million in gross proceeds from Terrapin Opportunity, L.P. for the sale of its common stock on August 31, 2015.
- 2Net proceeds after expenses are approximately $14.9 million.
- 3This transaction is part of a broader Common Stock Purchase Agreement with Terrapin, potentially up to $75 million over 24 months.
- 4The $15 million funding was a condition for the Second Global Amendment and Restatement Agreement.
- 5The filing confirms the settlement of a portion of the stock purchase agreement.
- 6An opinion of counsel from Taft Stettinius & Hollister LLP regarding the stock issuance is included as an exhibit.