Palm said Monday it would raise just over $100 million dollars to support the launch of its Pre smart phone.
The Treo maker said it would sell 18.5 million shares of common stock – or 49 percent of the preferred stock and warrants its investor, Elevation Partners, acquired in January 2009.
Palm will use the money to support its Pre launch
At today’s price of $6.02, that would bring in about $111 million, of which $49 million will go to repay Elevation for its investment.
The remainder Palm will use to launch the Pre and to strengthen its balance sheet, according to a press release. Elevation said it would use its money to buy Palm shares.
The Pre is to launch by June.
If today’s price holds, Palm would walk about with about $62 million. But of course who knows whether that will be the case.
