(Source: Associated Press/AP Online)
SUNNYVALE, Calif. - Smart phone maker Palm Inc. said Thursday it plans to sell about 16 million of its shares in an offering.
The offer includes an overallotment option in which underwriters may buy another 2.4 million shares.
Palm plans to use the proceeds for working capital and general corporate purposes. Venture capital firm Elevation Partners plans to buy $35 million of Palm's shares in the sale, at the public offering price.
As of June 26, the company had about 140.2 million shares outstanding, according to a filing with the Securities and Exchange Commission.
Shares climbed 41 cents, or 2.8 percent, to $14.85 in after-hours trading. The stock had closed down 22 cents at $14.44.
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