Globalstar, Inc. (OTCMKTS:GSAT) Up 29% In Past 30 Days

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Dallas, Texas 10/29/2013 (Financialstrend) – Globalstar, Inc. (OTCMKTS:GSAT) offers “mobile and data communication” services to its clients through by connecting them to its 36 satellites in orbit and 24 ground station network. It offers is services under the brand Globalstar Systems. It has a market capitalization of $937 million. During trading in October, the stock had posted a smart  29.3% increase in valuation.

 The rally in the stock through the month was due to the October 18 announcement that it’s  “Chairman and Chief Executive Officer” James Monroe has come forward to bring in new capital into the company by purchasing its shares. Mr Monroe is routing this investment through a limited liability company Thermo Funding Company LLC in which he is the key stake holder.

To bring readers up to speed about the October 18 stake purchase announcement, one should look  back to July this year. Between July and August Termo had parted with $13 million  to acquire common stock at $0.52 per share. Since then the company has been scouting for other investors who would come forward to purchase additional $20 million worth common stock.  On October 18, it was announced that Termo had agreed to pump in an additional $13.5 million to its August $6.5 million investment to get hold of 38.4 million shares of the firm. In addition, the limited liability company has agreed to purchase additional common stock worth $11.5 million between now and December 26, in case the company comes forward to sell the Stock. The purchase price has been fixed at 85% of the 10 day average price at which the common stock had traded when the decision to sell was made. The deal terms were approved by a special committee consisting of all independent directors of the board. During trading on October 28, the stock posted a solid 7.6% increase on its previous day close.

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