Globalstar's Nasdaq Uplisting: A Strategic Move for Growth and Liquidity

Globalstar, Inc. (GSAT) has announced a strategic move to transfer its stock listing from the NYSE American to the Nasdaq Global Select Market, effective February 11, 2025. This decision, coupled with a 1-for-15 reverse stock split, is expected to enhance the company's visibility, attract a more diverse and institutional shareholder base, and improve overall liquidity. Dr. Paul E. Jacobs, Chief Executive Officer of Globalstar, stated, "With these changes, we expect to enhance our visibility, attract a more diverse and institutional shareholder base, and improve overall liquidity."



The reverse stock split, with a ratio of 1-for-15, will automatically combine every 15 shares of issued and outstanding Common Stock into one issued and outstanding share of Common Stock, without any change in the par value per share. No fractional shares will be issued, and any fractional shares that would otherwise have resulted from the reverse stock split will be rounded up to the next whole number. The number of authorized shares of Common Stock under the Company's certificate of incorporation as amended will be reduced to 143,333,334 shares of Common Stock.

This strategic move aligns with Globalstar's growth trajectory, as it aims to attract more institutional investors, improve trading dynamics, and increase visibility. The reverse stock split is intended to align trading fundamentals with peers, make the stock more comparable to other companies in the telecommunications infrastructure sector, and help investors better understand and evaluate the company's performance.

In conclusion, Globalstar's transfer to the Nasdaq Global Select Market, along with the 1-for-15 reverse stock split, is a strategic move that could have a significant impact on the company's trading dynamics and liquidity. This change may lead to increased institutional interest, improved trading activity, and better price discovery, ultimately benefiting shareholders. However, it is essential to consider potential drawbacks, such as dilution and higher volatility, and monitor the company's progress closely.