GlobalStar Stock Slips On Reverse Stock Split Announcement, But Retail’s Excited
By Stocktwits Inc | First Published Nov 18, 2024, 11:56 PM ISTThe “reverse stock split” of its common stock is expected to take place in the first quarter of 2025 at a ratio to be determined closer to the effective date.
Shares of telecom infrastructure services provider GlobalStar ($GSAT) were down nearly 5% on Monday afternoon after it announced a reverse stock split and a listing change, lifting retail sentiment.
In a statement on Monday, GlobalStar said it is transferring its common stock listing to the Nasdaq Global Select Market in the first quarter of 2025. The company's common stock will continue trading on the NYSE American until the "uplisting" is complete.
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The reverse stock split of its common stock is also expected to take place in the first quarter of 2025 at a ratio to be determined closer to the effective date, the statement added.
Retail sentiment inched up to ‘neutral’ (48/100) from ‘bearish’ (42/100) a day ago. Message volumes improved to ‘normal’ levels from ‘low.’
The reverse stock split is intended to “align trading fundamentals with peers, improve liquidity and attract greater investment participation from a more diverse and larger set of institutional investors,” the company said in the statement.
“This strategic decision to transfer to the Nasdaq, coupled with a reverse stock split, reflects the exciting momentum and strong growth trajectory in our business. With these changes, we expect to enhance our visibility, attract a more diverse and institutional shareholder base, and improve overall liquidity,” Paul E. Jacobs, CEO of Globalstar, said in a statement.
Stockwits users appeared thrilled with the move.
The company plans to share more details on the move at its upcoming investor day on Dec. 12.
Last month, GlobalStar said it had received an $1.5 billion investment deal from Apple to develop and launch a new mobile satellite services network.
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