Globalstar, Inc. has entered into definitive agreements with select institutional investors, including a number of existing stockholders and Thermo Funding Company LLC, to raise gross proceeds of up to $55 million, before deducting placement agent fees and other estimated offering expenses, in a registered direct offering.
Under the terms of the transaction, Globalstar will sell an aggregate of up to $55 million
in principal amount of its 8.00 percent Convertible Senior Unsecured Notes. Investors will also receive warrants to purchase an aggregate of 15,277,771 shares of common stock. The notes will be convertible at a price of $1.80 per share. The warrants will be exercisable after stockholder approval is obtained until five years from the date of issuance at an exercise price of $1.80 per share. Until stockholder approval is obtained consistent with NASDAQ rules, exercise of the warrants is prohibited and conversion of the notes is restricted to 19.9 percent of the pre-transaction outstanding common stock on a pro rata basis. Globalstar's controlling stockholder has entered into a voting agreement to vote in favor of this transaction. Read the entire offering at this direct link.