MDA Space & Globalstar Sign $1.1 Billion Contract to Build Next Generation LEO Constellation
The news comes after Globalstar’s Jan. 7 announcement that it will transfer its listed GSAT shares from the NYSE American to the NYSE, effective tomorrow (Feb. 11).
(Brampton, Ontario & Covington, Louisiana) MDA Space Ltd. (TSX: MDA) and satellite operator Globalstar Inc. (NYSE American: GSAT) announced today that MDA will be the prime contractor for Globalstar’s next generation low earth orbit (LEO) constellation, per a deal between the two companies with a total contract value of approximately $1.1 billion.
Rendering of Canadadarm3 – published after the Canadian Space Agency selected MDA Space to design and build Canadarm3, the third generation of the Canadarm, as Canada’s contribution to NASA’s Gateway mission to establish the first space station orbiting the Moon – courtesy of MDA Space Ltd..
The news comes after Globalstar, Inc. announced on Friday (Feb. 7) that it will transfer the listing of its common stock from the NYSE American to the Nasdaq Global Select Market (NASDAQ) following the close of trading on February 10, 2025, effective as of February 11, 2025 (tomorrow) – Globalstar shares will continue to trade under the symbol “GSAT.”
“This strategic decision to complete a reverse stock split and uplist to the Nasdaq Global Select Market reflects the strong growth trajectory in our business,” said Dr. Paul E. Jacobs, Chief Executive Officer of Globalstar. “With these changes, we expect to enhance our visibility, attract a more diverse and institutional shareholder base, and improve overall liquidity.”
As part of its definitive contract with Globalstar, MDA Space will manufacture more than 50 MDA AURORA™ software-defined digital satellites for Globalstar, according to today’s press release from MDA Space.
“We are pleased to once again be working with Globalstar as they develop their next generation LEO constellation,” said MDA Space CEO Mike Greenley. “With the full contract now in place, we are moving full speed ahead on the program.”
The definitive contract announced today is a follow-on to an initial Authorization to Proceed (ATP) contract with an undisclosed customer, previously announced on November 17, 2023, according to MDA.
Per MDA, acontract value of approximately $750 million will be added to the company’s backlog in the first quarter of fiscal 2025; this amount is in addition to the ATP value of approximately $350 million that was previously added to backlog, for a total value of $1.1 billion under the definitive contract.
** Not investment advice; The FLY Report is not a registered investment advisor.
