Globalstar to be listed on NYSE

Shares of Globalstar will begin trading on the New York Stock Exchange later this month, 16 months after the stock was delisted from the Nasdaq because its price fell too low.

The company announced Wednesday that Globalstar will debut on the NYSE on April 21. The leadership team from the Covington-based company has been invited to ring the opening bell of the stock exchange that day.

““Listing on the NYSE will enhance the company’s trading liquidity as well as its visibility, all to the benefit of our loyal stockholders who have stuck with us over the past many years,” said Jay Monroe, chairman and CEO. “Do not think for a moment that we are finished or that we plan to rest. Quite frankly, we are just getting started and look forward to continuing our resurgence.”

Shares of Globalstar had been listed on the Nasdaq until December 2012, when the stock was delisted because the price fell below $1. At that time, the stock was trading at 30 cents a share. Since then, the company has traded as an “over-the-counter” stock, which means shares are traded through a dealer network rather than a centralized exchange.

During that time, the company has rebounded. Shares of Globalstar closed at $2.64 Wednesday, up a penny from Tuesday. In comparison, Globalstar stock closed on April 9, 2013, at 31 cents a share.

The improvement in Globalstar’s share price is largely due to the company’s completion of its next-generation satellite network, which cleared up problems with unreliable two-way communications. The company also cleaned up its subordinated and structured debt, lining up new financing.

“This is an incredible milestone for us,” said Tim Taylor, Globalstar’s vice president of finance, business and strategy. “And it’s representative of the turnaround we have executed over the last year.”

By being listed on the NYSE, Taylor said it increases the visibility of Globalstar and expands the potential investor base. Some funds and investors won’t buy over-the-counter stocks.

Globalstar announced in February it had applied to be listed on the NYSE or Nasdaq Capital Market. Taylor said the company was looking forward to working with whichever exchange could put his business up for trading first. “Both are valued and highly respected,” he said. But the Nasdaq requires that a stock close over $2 a share for 90 consecutive trading days, a target that Globalstar isn’t set to meet until the end of May.

Taylor said Globalstar was drawn to the NYSE, not only because the company was eligible for listing the earliest, but because of the exchange’s trading system. While the Nasdaq is based entirely on electronic trading, the NYSE still has human trading as a component. “We think having human eyes on things limits risk,” he said.