On a day that started with some euphoria, as the amount of money raised by Palm was elevated to over $80 million due to an increase in the size of public offering, the "real news" of the day was the statement issued by Palm where the company moved to distance itself from comments made by Roger McNamee of Elevation Partners. A summary what was submitted in the Form FWP
(Free Writing Prospectus) - Filing under Securities Act Rules 163/433 can be found on our sister site, PreCentral.net. You can view CNBC's Silicon Valley Bureau Chief, Jim Goldman's thoughts on Palm's Profit Picture.
Circling back to the early morning euphoria, it all started at about 9pm PDT Monday night, when Palm issued a press release, Palm Announces Pricing and Increased Size of Public Offering stating that the company increased the size of its previously announced public offering of common stock to approximately 23.125 million shares, including approximately 18.5 million common shares underlying 49% of the units of Series C preferred stock and warrants acquired by Elevation Partners in January 2009. The public offering price per share will be $6.00, which means that upon the closing of the offering, Palm will receive net proceeds of approximately $83.9 million.
At All Things Digital, in his Digital Daily column, John Paczkowski referred to this as a "Bake Sale" and proclaimed that it was a "resounding success."
"Clearly, the $83.9 million Palm (PALM) netted from the sale went a long way toward reassuring investors that it can afford to give the Pre the strong launch it deserves."
On Tuesday, PALM rose to as high as $7.00 before closing at $6.92.
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Disclosure: I do not own stock in Palm.
