Palm needs money for launching the Pre, developing other products

Palm has just announced its intention to remarket around 18.5 million common shares which underlie preferred stock and warrants that Elevation Partners has acquired in January 2009.

Assuming the remarketing will be completed, Elevation Partners would receive $49 million, representing the price it initially paid for the shares, while Palm should receive all net proceeds in excess of this amount.

The Sunnyvale company said the money would be used in order to strengthen its working capital position, as well as “to further bolster the resources Palm is devoting to the launch of the Palm Pre and future product-development efforts.”

palm-pre-gsm-closed

For the moment, the actual release date of Palm Pre is not known, but the smartphone is said to be outed in the US first, via Sprint (apparently, the carrier has exclusivity on the handset until 2010).

Palm surely hopes the Pre will be a huge success, because, otherwise, the company could face serious problems – it’s actually already facing them since RIM and Apple conquered a good portion of its smartphone market share. 

Via Palm

Author: Ilinca Nita

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  • Sally

    You really need to hire an English-speaking editor. This post was nearly unreadable. This sentence is atrocious:

    For the moment, the actual release date of Palm Pre is not known, but the smartphone is said to be outed in the US first, via Sprint (the carrier apparently has exclusivity on the handset until 2010).

  • http://www.unwiredview.com Ilinca

    Care to explain why is that atrocious?

    Is it because of the term “outed”? If it is, you should know that many tech blogs are using it, exactly in the context I've used it – although it doesn't literally stand for “releasing / introducing a product on the market”.

  • driver man

    Palm says it “will receive all net proceeds in excess of $49 million”, not that it “should receive about $49 million.” Maybe you got it wrong.

  • driver man

    Palm says it “will receive all net proceeds in excess of $49 million”, not that it “should receive about $49 million.” Maybe you got it wrong.

  • http://www.unwiredview.com Ilinca

    Yes, I was wrong. It's corrected now.

    Thanks.

  • Arbie_Trary

    Maybe becase an electrical device is not “in the closet” prior to it's “RELEASE”, or being “AVAILIBILE TO THE PUBLIC”? From your response to Sally, you obviously know that the term “outed” doesn't literally stand for “releasing / introducing a product on the market”. So why use it in that contex in the first place? If “many” other tech blog writers jump off a cliff, will you do the same? <LOL>

  • Arbie_Trary

    Maybe becase an electrical device is not “in the closet” prior to it's “RELEASE”, or being “AVAILIBILE TO THE PUBLIC”? From your response to Sally, you obviously know that the term “outed” doesn't literally stand for “releasing / introducing a product on the market”. So why use it in that contex in the first place? If “many” other tech blog writers jump off a cliff, will you do the same? <LOL>