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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT -- Ignore unavailable to you. Want to Upgrade?

To: djane who wrote (6832)	8/25/1999 2:58:00 PM
From: djane	Read Replies (1) \| Respond to of 29987

More info on ICO financing plans Top>Business & Finance>Investments>Sectors>Services>Communications Services>ICOGF (ICO Global Communications) cogini by: satmeister119 (44/F/Carmel, CA) 670 of 670 They only have 130 million in the bank. They are running through cash at a rate of about 15 million per month. They owe about 47 million on the bond interest. The idea is to raise between 4-6 hundred million in cash, and 3-4 hundered milliion in vendor defferals. The exact terms are complicated, but in effect people will be buying stock at 4, and receiving some three dollar warrants. I have not calculated the exact dilution as I am only in the bonds. However, the elimination of a substantail portion of the financing risk will far overcome the effects of any dilution. If the bondholders approve the consent, the company will most likely pay the interest on September 1st. If they don,t, we'll see. I tend to think that they will pay it anyway since doing so basically will get us out of their hair while they figure out how to raise this money. The new equity will come in with greater voting rights than the existing equity. This will allow the board of directors to be consolidated into the hand of fewer people. Right now, it si impossible for them to make decisions because the board is full of bureaucrats. It is fairly well known that Hughes will be the biggest of the Strategic Investors to be in on this deal. Otherwise, it is not really known who it is. Of course, this all depends upon them actually completing the financing. Posted: 8/25/1999 2:39 pm EDT as a reply to: Msg 669 by corgini