Globalstar, Inc. (OTCMKTS:GSAT) Recovers
Yesterday Globalstar, Inc. (OTCMKTS:GSAT) logged a green close after a red streak that shaved nearly $0.20 off the share price. The ticker traded in restrained volume compared to the better part of the last two weeks and stopped at $1.65 by the closing bell.
GSAT surged as high as $1.73 last week but the stock reversed its movement after a significant percentile jump. The slower decline was accelerated by an event triggering on Nov 7 and announced on the next day. GSAT informed of the automatic conversion of convertible notes. The aggregate amount of the notes was a little over $25 million.
The provisions include automatic conversion into common shares at $0.50 per share, as well as a premium of 103 common shares for each $1000. This all amounts to the issuing of around 54 million GSAT shares. Reactions were mixed, as the company both cleared a substantial amount of debt, and got diluted by no small amount. The conversion likely helped the ticker slip over 5% on the day it was announced but with yesterday’s close GSAT appears to be back on solid ground.
The company’s strongest trump card is the possibility of GSAT to offer part of its satellite spectrum for broadband services, should the FCC come out with a final ruling in the company’s favor, and the speculations of a possible acquisition, in case a large telecom company takes interest in this. So far the jury is still out and the FCC’s final ruling will determine how things play out.
Other big dollar volume movers in yesterday’s session include Growlife, Inc. (OTCBB:PHOT), who cropped up among the most heavily traded OTC stocks, with over 19 million shares changing hands and the price reaching $0.10 by the closing bell. Alkaline Water Company, Inc. (OTCBB:WTER) dropped nearly 18% to a close of $0.37.
