GlobalStar (GSAT) to Offer 8M Shares

December 1, 2016 8:07 AM EST

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GlobalStar (NYSE: GSAT) files Prospectus Supplement No. 6 related to an offering of 8,027,632 common shares by underwriter Terrapin to the public.

From the Filing:

Pursuant to this prospectus supplement and the accompanying prospectus, we are offering 8,027,632 shares of our voting common stock to Terrapin Opportunity, L.P., or Terrapin, pursuant to a Common Stock Purchase Agreement between us and Terrapin dated as of August 7, 2015, which we refer to as the Purchase Agreement, at a price of approximately $0.80 per share. The total purchase price for the shares is approximately $6.5 million. We will receive net proceeds from the sale of these shares of approximately $6.45 million, after deducting our estimated offering expenses of approximately $50,000 in connection with this offering.

This prospectus supplement and the accompanying prospectus also cover the resale of these shares by Terrapin to the public. Terrapin is an “underwriter” within the meaning of Section 2(a)(11) of the Securities Act of 1933, as amended, or the Securities Act, and any profits on the sales of shares of our common stock by Terrapin and any discounts, commissions or concessions received by Terrapin may be deemed to be underwriting discounts and commissions under the Securities Act.

We expect to issue these shares to Terrapin on or about November 30, 2016. Our common stock is traded on the NYSE MKT under the trading symbol “GSAT.” On November 29, 2016, the last reported sales price for our common stock was $0.82 per share.

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