COVINGTON, La. - Globalstar (NYSE:GSAT), Inc. (NYSE American: GSAT), a provider of telecommunications infrastructure and technology, has announced plans to transfer its common stock listing to the Nasdaq Global Select Market in the first quarter of 2025. The company's Board of Directors has also approved a reverse stock split, anticipated to occur concurrently with the transfer, at a ratio to be determined.
The company, which is currently listed on the NYSE American, aims to complete the transition to Nasdaq in alignment with the reverse stock split's effective date. The reverse stock split is part of a strategy to enhance trading fundamentals and attract a broader, more institutional investor base.
CEO Dr. Paul E. Jacobs commented on the decision, stating that the move to Nasdaq and the reverse stock split are expected to increase visibility, shareholder diversity, and liquidity, aligning the company's trading dynamics with those of industry peers. He indicated that these initiatives could unlock value for shareholders in both the near and long term. Further details will be shared at Globalstar's investor day on December 12.
Globalstar's services include satellite and terrestrial connectivity, catering to consumers, businesses, and government agencies worldwide. The company's offerings also extend to 5G, internet of things (IoT) solutions, and asset tracking and monitoring.
This announcement is based on a press release statement and contains forward-looking statements regarding the timing and expected benefits of the uplisting and reverse stock split. These statements are subject to risks and uncertainties that could cause actual results to differ materially. Globalstar has not updated any forward-looking statements to reflect events or circumstances after the date of the press release.
In other recent news, Globalstar, Inc. reported an impressive Q3 revenue of $72 million, marking a 25% increase from the same period last year. This growth was primarily driven by a 28% rise in service revenue, which included a one-time $7.5 million item related to performance bonuses. The company's adjusted EBITDA also saw a significant 34% increase, reaching a 59% margin.
Additionally, Globalstar secured a 10-year authorization to expand its terrestrial applications in Mexico, following a successful bid in an auction conducted by Mexico's Instituto Federal de Telecomunicaciones. This development allows the company to broaden its services within the Mexican market, aiming to provide enhanced connectivity solutions.
Furthermore, Globalstar closed a major deal with its largest customer, involving the creation of a new network and satellite launches planned for the upcoming year. The company also received approval from the FCC (BME:FCC) for a 15-year extension for HIBLEO-4 authorization, allowing for up to 26 replacement satellites.
Following these developments, Globalstar has raised its 2024 revenue guidance to $245 million-$250 million and adjusted EBITDA margin guidance to 54%. The company is also anticipating a $1.5 billion inflow from a prepayment agreement and equity sale related to the new network and satellite launches. These are among the recent developments in the company's operations.
InvestingPro Insights
As Globalstar (NYSE American: GSAT) prepares for its transition to the Nasdaq Global Select Market and implements a reverse stock split, recent financial data and market trends provide additional context to this strategic move.
According to InvestingPro data, Globalstar has shown promising revenue growth, with a 25.35% increase in quarterly revenue as of Q3 2024. This growth trajectory aligns with the company's ambition to enhance its market position and attract a broader investor base through the Nasdaq listing.
Despite the recent growth, an InvestingPro Tip indicates that analysts do not anticipate the company will be profitable this year. This insight underscores the importance of Globalstar's strategic decisions to improve its market standing and potentially its financial performance.
The company's stock has demonstrated strong performance over various timeframes, with InvestingPro data showing a 50% price total return over both one month and six months as of the latest available data. This positive momentum could be further amplified by the planned listing transfer and reverse stock split, potentially enhancing shareholder value as CEO Dr. Paul E. Jacobs suggested.
It's worth noting that InvestingPro offers 9 additional tips for Globalstar, providing investors with a more comprehensive analysis of the company's financial health and market position. These insights could be particularly valuable as the company undergoes significant changes in its listing and share structure.
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