Global Star Acquisition Enters Securities Purchase Agreement with PIPE Investors

Global Star Acquisition Inc. (NASDAQ: GLST), a Delaware corporation, recently entered into a securities purchase agreement with institutional and accredited investors, as outlined in its 8-K filing dated January 31, 2025. This agreement, referred to as the PIPE Securities Purchase Agreement, involves a significant financial transaction between the company and the PIPE Investors.

The agreement indicates that the PIPE Investors have committed to subscribing for and purchasing promissory notes convertible into shares of Global Star Acquisition’s common stock. The aggregate original principal amount of the financing under the PIPE Securities Purchase Agreement amounts to $4.5 million.

Additionally, approximately 900,000 shares of K Enter common stock will be issued to the PIPE Investors by a K Enter shareholder. These shares are convertible into Global Star Acquisition’s common stock at a later date. The proceeds from the aggregate closing will contribute to the funds available to the company under the Business Combination Agreement.

The promissory notes issued as part of this agreement will be available for conversion into common stock at a price of $10.00 per share. The notes will accrue interest at a rate of 3.00% on a semi-annual basis and will reach maturity on the thirty-sixth month anniversary of their issuance.

As part of the transaction, the PIPE Investors will also enter into a registration rights agreement, ensuring that certain registration rights are provided concerning the shares of Common Stock issuable upon conversion of the PIPE Notes, in line with the terms of the agreement.

It is essential to note that forward-looking statements have been included in the filing, in adherence to regulations under the Securities Exchange Act of 1934. These statements provide insights into the company’s intentions to address compliance issues and potential delisting concerns.

Global Star Acquisition Inc. remains committed to regulatory compliance and intends to provide updates as necessary to reflect any changes or developments in its operations. The company maintains a strategic approach to its financial agreements and regulatory obligations.

Investors and stakeholders are advised to review the full details of the PIPE Securities Purchase Agreement along with the associated agreements, including PIPE Notes and PIPE Registration Rights Agreement, which provide comprehensive information on the terms and conditions of the transaction. Investors are further encouraged to refer to the company’s filings with the Securities and Exchange Commission for a complete overview of the company’s financial standing and regulatory adherence.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Global Star Acquisition’s 8K filing here.

Global Star Acquisition Company Profile

Global Star Acquisition, Inc does not have significant operations. It focuses on effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. The company was incorporated in 2019 and is based in McLean, Virginia.