Palm just sold 1.2 million shares to an unnamed institutional investor for $15 per share. As it stands right now, the stock price is $16.32, so whoever the buyer is, they made out well. Further, Palm agreed to pay $15,000 in legal expenses associated with the deal.
Palm has the ability to offer $200 million in shares virtually any time it wants. This offering is the first that will count against this total. The additional shares mark a 4.1% increase in shares outstanding and will be used to fund the business as it emerges from the PalmSource spinoff, deals with the Handspring acquisition and the ghastly renaming to palmOne.
For the moment, the identity of the investor is hidden, but Palm fans should rest assured that this is not only a good move for the company, it’s a good sign that an institution has faith in the business. Hopefully this funding will give Palm the wiggle room it needs to continue to release new products like the much anticipated Tungsten 3 and the other rumored Zire models.