Globalstar Stock Continues To Climb: What's Going On?

Globalstar Inc GSAT shares are continuing to move higher Wednesday after the company on Tuesday appointed Paul Jacobs to CEO and announced an agreement to license for XCOM Labs technology.

What You Need To Know: Jacobs is the founder and CEO of XCOM Labs, as well as the former executive chairman and CEO of Qualcomm Inc QCOM. He will replace David Kagan, who is set to retire from his role.

In connection with the management change, Globalstar entered into a strategic perpetual licensing agreement for exclusive access to certain key XCOM technologies and personnel. The agreement covers several technologies for wireless spectrum innovation. 

Under the terms of the agreement, XCOM will receive considerations of approximately 60 million shares of Globalstar common stock.

"Bringing together Globalstar’s terrestrial spectrum and relationships with leading partners around the world with XCOM’s differentiated technology, which is well suited for high-performance applications, creates a significant opportunity to deliver for private network customers with mission-critical needs," Jacobs said. 

XCOM senior executives Matt Grob and Peter Black will join Globalstar alongside Jacobs. Tamer Kadous, vice president of wireless, and Daaman Hejmadi, vice president of engineering, are also expected to join the company following a transition period. 

See Also: US GDP Revised Downward To 2.1% In Q2, Reflecting Softer Economic Growth

GSAT Price Action: Globalstar shares closed Tuesday up 23.6%. The stock was up another 8.4% at $1.42 at the time of writing, according to Benzinga Pro.

Photo: StockSnap from Pixabay.