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

To: Sawtooth who wrote (3791)	4/7/1999 9:35:00 AM
From: Jeff Vayda	Respond to of 29987

Ouch, ICO is going to do whatever it takes to get their system up. They obviously believe there is a market. (Thanks to phillips Telecom) Jeff Vayda ICO PLANS CUT-PRICE RIGHTS OFFERING ICO Global Communications (Holdings) Ltd. [ICOGF] is preparing to file a $500 million rights offering with the U.S. Securities and Exchange Commission (SEC). The offering would begin early next month on the basis of one ordinary share for each ordinary share owned and be priced at $5 per share. That's a low-price for a stock that yesterday (4/5) closed at $8.56, but it reflects the difficulties mobile satellite service providers are experiencing in raising funds on the back of pioneer Iridium LLC's [IRID] high profile struggles. At our deadline, ICO investors were noting their disapproval by driving the stock price down more than 17.5 percent to $7.06. The offering should give ICO minimum gross proceeds of $500 million, which it will use to continue funding the creation of its satellite, ground and distribution network for global mobile satellite communications. A previous commitment by Hughes Electronics Corp. [GMH] to make an additional investment of up to $100 million in ICO, now will be made within the rights offering. Hughes is ICO's prime contractor. Assuming full subscription, the rights offering will complete ICO's current plans for equity financing, and the company will have raised more than $4 billion in equity and debt since inception in 1995. The $500 million would provide ICO with enough finance to fund its cash needs into the first quarter of 2000, and provide the company with 85 percent of the funding it needs to deploy its global system. ICO revealed that of its 207.6 million ordinary shares, about 89 percent are held by strategic investors - primarily telecommunications and technology companies around the world - and are not available for trading. Assuming full subscription, about 230 million shares would be available for trading after the rights offering is completed. (Michael Johnson, ICO, ico.com, +44-181-600-1255.)