Recently formed satellite-based asset tracking and monitoring company Orbital Tracking Corp. is to acquire UK-based Global Telesat Communications in an all-share transaction.
Under the terms of the transaction, the seven private holders of Global…
Recently formed satellite-based asset tracking and monitoring company Orbital Tracking Corp. is to acquire UK-based Global Telesat Communications in an all-share transaction.
Under the terms of the transaction, the seven private holders of Global Telesat’s entire capital stock have exchanged their shares for 2.54 million shares of Orbital common stock, 8,746,000 of newly issued series E convertible preferred stock (convertible into 10 shares of common stock).
In addition, David Phipps, the founder, majority owner and sole director of Global Telesat, received a cash payment of US$400,000 and a US$122,536 one-year promissory note.
Phipps has also been appointed the new CEO and chairman of Orbital Tracking. The company’s previous chief executive David Rector will continue in his other position of CFO.
The logic behind the merger stems from the formation of Orbital Tracking Corp and the contract acquisition it agreed with Global Telesat back in December 2014.
Orbital Tracking is the latest incarnation of a company that was originally incorporated as Swifty Carwash & Quik Lube Inc in Florida in 1997. The venture did not last long and in October 1999, the company changed its name to SwiftyNet.com, which in turn became web search portal Yseek in January 2001.
Since then it has sought to operate in a number of fields, reregistering as Advanced 3-D Ultrasound Services, World Energy Solutions, Eclips Media Technologies and Silver Horn Mining.
In January 2014, the company changed its name to Great West Resources Inc. in connection with the plans to enter into the business of potash mining and exploration.
These efforts were abandoned in late 2014 and Phipps was brought in as a part-time consultant to advise it on transitioning the firm towards becoming a satellite communications business.
As part of this, the renamed Orbital Tracking Corp purchased contracts and licences worth US$250,000 from Global Telesat that permitted it to utilize Globalstar’s mobile satellite network.
With David Rector, Orbital Tracking’s sole officer and director, having no experience in the satellite industry, Phipps’ knowledge, contacts and experience became key to the future prosperity of the business and has ultimately led to the merger with Global Telesat, the company he founded in 2008.
In connection with the closing of the transaction, Orbital Tracking raised US$1.1m in a private placement. The company intends to use the net proceeds of the offering principally for sales and marketing, R&D and general and administrative expenses.
