Globalstar, Inc. (Nasdaq: GSAT), the mobile satellite voice and data company that moved to Covington from Silicon Valley, announced that it completed a private placement with institutional investors including Thermo Funding Company LLC, to raise proceeds of $38 million. Additionally, investors have the option to invest up to an incremental $12 million over an approximate three month period on the same principal terms.
“We are very pleased to announce this financing which was fully subscribed by current Globalstar investors,” said Jay Monroe, Executive Chairman of Globalstar, Inc. “As we continue with final preparations for next month’s launch of six new second-generation satellites, the investment associated with this capital raise once again demonstrates the continued confidence our investors have in Globalstar and our long-term future.”
Proceeds of this financing are expected to be used to meet the Company’s capital expenditure needs, including the procuring and deploying its second-generation constellation and other operating costs.