Globalstar, Inc. (NYSEAMERICAN:GSAT) is moving higher again in the pre-market session on Wednesday, extending its monthly gain to 20%.
Major Trigger:
Globalstar received an advance payment of $37.5 million from a customer
Key Highlights:
- On June 4, 2021, Globalstar, Inc. (“Globalstar” or the “Company”) received an advance payment of $37.5 million from a customer pursuant to an agreement related to the Terms Agreement described in its Annual Report on Form 10-K for the year ended December 31, 2020.
- The advance payment is expected to be repaid from services provided by the Company under the Terms Agreement. Any portion of the advance payment not repaid in services will be repaid in cash over time. Globalstar will use the proceeds from the advance payment to repay a portion of the amount outstanding under its first lien credit facility. Subject to certain conditions, the customer may make additional advances to the Company in the future on the same terms.
- The advance payment agreement also includes customary covenants, conditions and remedies, and, under certain circumstances, the Company’s obligations under it may be secured by liens on certain of its assets.
Market Reaction
As of 8:52, GSAT stock jumped 4% to $1.31. So far the stock has traded 20K shares traded hands.
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