GLOBALSTAR - The New Beginning - GSTRF / GSTRQ Message Board

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Technology Stocks : GLOBALSTAR - The New Beginning - GSTRF / GSTRQ

GSAT 51.29

-5.7%

9:30 AM EST

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To: pcstel who wrote (1)	11/14/2001 4:27:14 PM
From: crm114	of 65

How much cash is needed? Or more to the point, how much of the equity in the new entity will go to the existing security holders, and how much to the new cash investor? In recent months I had speculated that as much as 50% fully diluted of the new entity might go to the cash investor. At that point it appeared that $100 to 200 million would be required and that progress to cashflow breakeven might take another 6 quarters or so. But now we have new information: 1. FAA deal may be in the works, and I would expect that the binRidium benchmark of $72 million would be a powerful psychological price floor. 2. ATC use of 2 gig spectrum may be possible. 3. Cash burn has been cut below what we expected. 4. New cash forecast of $45 million ... although we must be cautious, as that number may be pre-lawyers and pre-SP-greenmail. The new company could see serious revenues being generated fairly quickly with Maurician pricing. At this point the bond holders will be hurt if too much equity is given up to raise more cash than is needed. CRM

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