All,
Note: Eventually all GLP shares will be converted to GSTRF shares. Or vice vesa?
The following shares does not add up to the total shares of GLP outstanding. We should use 6/30/1999 figure first and add more preferred convertible + warrants shares on top of it. No wonder Valueman calls for an audit. I add some comments on 6/30/99 figure later.
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HOLDERS OF OUR COMMON STOCK MAY BE DILUTED BY FUTURE STOCK ISSUANCES.
As of December 31, 1999, 88,742,794 shares of our common stock were
outstanding. In addition:
- holders of outstanding warrants issued in connection with Globalstar's
11 3/8% senior notes have the right to exercise them for 3,906,524 shares
of our common stock at an exercise price of $17.394 per share;
- in connection with their guarantee of Globalstar's $500 million credit
facility, Loral and certain of its subsidiaries have warrants to purchase
an aggregate of 3,450,000 Globalstar partnership interests (equivalent to
approximately 13,800,000 shares of our common stock) at an exercise price
of $91.00 per partnership interest (equivalent to $22.75 per share of GTL
common stock);
- in connection with its provision of $500 million of vendor financing to
Globalstar (for which the terms of $400 million are still being
finalized), Qualcomm is expected to receive a number of warrants to
purchase Globalstar partnership interests comparable to those received by
Loral pursuant to Loral's guarantee of Globalstar's $500 million credit
facility;
- Globalstar employees and directors have options to buy 4,643,800 shares
of our common stock, at exercise prices ranging from $4.16 to $29.78 per
share;
- under our stock option plan, we may in the future grant employees'
options to purchase as many as 286,600 shares of our common stock;
- in connection with service provider arrangements in China under which
China Telecommunications Broadcast Satellite Corporation agreed to act as
the sole distributor of Globalstar service in China, China Telecom has an
option to acquire 937,500 Globalstar partnership interests (equivalent to
approximately 3,750,000 shares of our common stock) for $18,750,000 after
commencement of service; and
- 4,396,295 shares of our Series A preferred stock are outstanding and are
convertible into 9,451,837 shares of our common stock and 3,000,000
shares of our Series B preferred stock are outstanding and are
convertible into 5,778,810 shares of our common stock.
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My calculation from the folowing statement - 270 miilion shares of GLP (82+151+4+15+2.7+2.2+13.8=270.7) as of 6/30/1999.
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HOLDERS OF COMMON STOCK MAY BE DILUTED BY FUTURE STOCK ISSUANCES.
At June 30, 1999, 82,026,576 shares of GTL's common stock were outstanding.
In addition, at that date:
- Globalstar partners had the right, exercisable over many years, to
exchange their partnership interests for about 151,750,000 shares of
common stock;
- holders of outstanding warrants had the right to exercise them for
4,069,325 shares of common stock;
- GTL has outstanding 6,999,900 shares of 8% Convertible Redeemable
Preferred Stock, due 2011, convertible into 15,049,470 whole shares of
common stock;
- Globalstar employees had unexercised options to buy 2,731,500 shares of
common stock; and
- under GTL's stock option plan, GTL may in the future grant employee
options to purchase as many as 2,230,300 shares of common stock.
In addition, on August 5, 1999, in consideration for the guarantee by two
Loral subsidiaries of a $500 million Globalstar credit facility, Loral and
certain Loral subsidiaries received warrants to purchase an aggregate of
3,450,000 Globalstar partnership interests (equivalent to approximately
13,800,000 shares of GTL common stock). The warrants vest in stages (provided that the guarantee is then in effect): 50% on February 5, 2000, 25% on August 5,2000 and the remaining 25% on August 5, 2001. The warrants are immediately exercisable after vesting and have a seven-year term.
Brian H.
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