Palm boosts share offering to get $83.9m
updated 11:35 am EDT, Tue March 10, 2009
Palm Boosts Share Offering
Palm today said it would up the number of shares involved in its stock resale plan from 18.5 million shares to just over 23.1 million. Each share will have a going price of $6 and should boost Palm's revenue in the deal from its original $49 million to $83.9 million. Elevation Partners will still get $49 million to buy another 8.2 million shares at the same price as for the public deal.
The additional $34.9 million is potentially essential for Palm, which at last report had $220 million or less in cash reserves and has been consuming about $95 million to $100 million per quarter, which could render it bankrupt. The company is banking on the launch of its Pre touchscreen phone in the spring to stem its losses and turn the company around.
