Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Maurice Winn who wrote (4231)	4/27/1999 11:41:00 AM
From: John Stichnoth	Respond to of 29987

Maurice, or Thread--Can you help me get a handle of number of shares outstanding eventually? I count up the following: 82 million As of 12/31/98 15 million with the January 8% Converts issuance 42.5 million probable with the remaining $600 million issuance 1 million China Telecomm warrants outstanding 6.7 million Convertibles not counted in dilution because anti-dilutive 5.8 million Options and warrants underwater ---------- 152.5 million Eventual shares outstanding. Of which GTL owns, and has rights to income of 20.2 million shares, or 34.8%. Do you agree so far? But then there is this paragraph: Partners in Globalstar have the right to exchange their ordinary partnership interests into common stock of GTL on an approximate one-for-four basis following the Full Constellation Date, as defined, of the Globalstar System and after at least two consecutive quarters of positive net income, subject to certain annual limitations. GTL has reserved approximately 152 million shares for this purpose. I take that to mean that the partners can convert their 65.2% interest in Globalstar into 50% of GTL. (NB: 152MM/4 = 38MM, which is equal to the number of partnership interests held by the 65.2% owners) At that point, Globalstar would become a wholly owned subsidiary of GTL. The partners would face some dilution of their ownership in making the switch. The benefit to them would be to create a more liquid investment. Am I reading this right?