News by Michael Oryl on Monday March 09, 2009.
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Today Palm announced that it is going to be putting 18.5 million shares of its common stock onto the market. These shares were tied to a prior investment made by Elevation Partners. The proceeds from the sale of the stock, currently worth US$105 million, will be used to pay off the $49 million owed Elevations Partners. Any money from the sale in excess of the $49 million point will go back to Palm to help sure up its cash position.
Palm has said that Elevation Partners plans to use its $49 million from the sale of the shares to purchase shares on its own behalf.
This announcement comes at a time when Palm is trying to hold itself together while the Palm Pre is being readied for sale on Sprint by the end of Q2 of this year. The Pre is considered by many to be Palm's last chance at survival in a smartphone market that is becoming increasingly competitive in a shrinking economy.