Palm: We’re Desperate, Get Used to It

With no more than $220 million in cash on hand, Palm’s working capital position is…how can I put this delicately…abysmal. So news that the company is remarketing a bit of stock to keep itself afloat shouldn’t come as a surprise. This morning Palm (PALM) said it was exercising its right to remarket 18.5 million common shares originally acquired by Elevation Partners back in January. Under the terms of the arrangement, Elevation will recoup the $49 million it originally paid for the shares, and Palm will receive any net proceeds beyond that amount. Right now, Palm is trading at around $6.30. So the company could do quite well in the sale. And it certainly needs to, for obvious reasons. “These proceeds would be used to strengthen Palm’s working capital position and to further bolster the resources Palm is devoting to the launch of the Palm Pre and future product-development efforts,” Palm said in a statement.