Globalstar, Inc. (NYSEAMERICAN: GSAT) is flying early on in today’s trading session, and for good reason. News is breaking that the company has terminated a merger agreement, leading to excitement among investors and sending the stock screaming for the top. Today, we’ll talk about:
- The cancelled merger;
- what we’re seeing from GSAT as a result; and
- what we’ll be watching for ahead.
GSAT Terminates Merger Agreement
As mentioned above, Globalstar is having an incredibly strong start to the trading session this morning after news broke that the company is terminating a merger agreement. Reports are stating that on July 31,2018, the Stockholders’ Representative terminated the merger by mutual written agreement. Therefore, the stockholders included in the merger and GSAT have entered into a Termination of Agreement and Plan of Merger. The company said that no termination fees are payable as a result of the termination of the agreement.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news causes moves. In the case of Globalstar, the news proved to be overwhelmingly positive. With the potential merger off of the table, the company can go back to focusing on organic growth. So, it comes as no surprise to see that excited investors are sending the stock screaming for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:16), GSAT is trading at $0.67 per share after a gain of $0.11 per share or 19.64% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on GSAT. In particular, we’re interested in following the story surrounding the company’s plans now that the merger is off of the table. Nonetheless, we’ll continue to follow the news closely and bring it to you as it breaks!
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