Palm has stated it will remarket 18.5 million common shares and warrant units held by Elevation Partners, and based on the current market price should pull in roughly $105 million; this move is seen as an attempt to bolster Palm’s capital ahead of the Palm Pre launch.
Elevation Partners will receive $49 million which it originally paid for the units while Palm will keep all net proceeds above said $49 million.
Palm shares rose 4 percent to $6.41 in early trade but had retraced some gains in recent sessions on worries on customer spending and that the delays launch of the Palm Pre could cause liquidity concerns.
Source – itweb
