Globalstar announces 1-for-15 reverse stock split, Nasdaq move

COVINGTON, La. - Globalstar, Inc. (NYSE American: GSAT), a satellite and terrestrial connectivity service provider, has announced a 1-for-15 reverse stock split set to take effect after the market closes on February 10, 2025. According to InvestingPro data, while the stock has shown mixed performance with a 46.79% gain over the past six months, recent trading has been challenging, with shares currently trading at $1.58. The company also plans to transfer its common stock listing from the NYSE American to the Nasdaq Global Select Market on February 11, 2025.

The reverse stock split will consolidate every 15 shares of issued and outstanding common stock into one share, maintaining the par value per share. This action is expected to reduce the number of authorized shares of common stock to 143,333,334. No fractional shares will be issued; instead, shareholders will receive a rounded-up whole share in place of any fractional share that would have resulted from the reverse stock split.

Dr. Paul E. Jacobs, CEO of Globalstar, stated that this strategic move aims to reflect the company’s growth trajectory, enhance visibility, attract a more diverse shareholder base, and improve liquidity. The transition to the Nasdaq is anticipated to fulfill the eligibility requirements for inclusion in the Nasdaq Composite Index. InvestingPro analysis reveals the company operates with moderate debt levels and has achieved revenue growth of 13.58% in the last twelve months, though it’s currently working toward profitability with analysts projecting positive earnings this year.

Globalstar expects the last day its common stock will trade on the NYSE American to be February 10, 2025. The stock is set to begin trading on a split-adjusted basis on the Nasdaq under a new CUSIP number 378973507, retaining the ticker symbol GSAT, on February 11, 2025.

Computershare Trust Company, N.A., will serve as the exchange agent for the reverse stock split. Shareholders holding certificated shares will be instructed on how to surrender their pre-split share certificates, while those with book-entry shares or shares held through a bank, broker, or nominee will not need to take any action.

Further details about the reverse stock split and related charter amendments are available in the definitive information statement filed with the U.S. Securities and Exchange Commission on December 27, 2024.

This move is based on a press release statement from Globalstar, which provides satellite and terrestrial connectivity services and products for asset tracking, data transmission, and emergency communication across various industries and government agencies. The company maintains a healthy current ratio of 1.09 and generated EBITDA of $84.03 million in the last twelve months. For deeper insights into Globalstar’s financial health and growth prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports.

In other recent news, Globalstar Inc (NYSE:GSAT)., a key player in the communication services sector, has been involved in several notable developments. The company has been testing the waters with SpaceX’s Starlink network, potentially shifting away from its traditional satellite communication providers. This move has caused a stir among investors, given Globalstar’s existing partnership with Apple (NASDAQ:AAPL).

Meanwhile, Globalstar has reported a 35% surge in UK device sales in 2024, primarily driven by the SPOT line of products. The company’s commercial IoT devices have also seen increased uptake across multiple industries.

In terms of financial performance, Globalstar has projected revenue growth for 2024 and 2025, with an emphasis on expanding 5G and Mobile Satellite Services (MSS). The company’s revenue guidance for 2024 is in the range of $245-250 million, and for 2025, it is set between $260-285 million.

Furthermore, Globalstar has approved a reverse stock split and a reduction in the number of authorized shares, aiming to optimize its capital structure. The exact timing and ratio of these amendments will be decided at a future date by the company’s authorized officers and the Board.

Lastly, Globalstar has successfully completed its first 5G data call using the company’s Band n53 spectrum, marking a significant step in the utilization of its mid-band spectrum for advanced mobile applications. These developments underscore Globalstar’s continued efforts to enhance shareholder value and expand its offerings in the communication services sector.

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