Palm is remarketing 18.5 million shares acquired by investor Elevation Partners in January. At the time of the $100 million investment from Elevation, Palm retained the right to remarket 49 percent of the purchased common shares if the company needed to raise more cash.
During Palm’s recent earnings call, it revealed it had already spent the entire $100 million raised. Elevation Partners will recoup the $49 million it originally paid for the shares, while Palm will grab cash in excess of the original purchase price which should net the company roughly $50 million.
Palm says the cash will be used to strengthen its working capital position, launch the Palm Pre, and developer future products.
