Palm receives USD 100 mln in funds from Elevation Partners (USA)

December 26, 2008 at 12:59 Leave a comment

US-based smartphone developer Palm announced that Elevation Partners has agreed to make an additional USD 100 million equity investment in Palm. Under a definitive agreement, Elevation will increase its investment in Palm by acquiring newly issued Series C preferred stock that is convertible into Palm common stock at a price of USD 3.25 per share, a 31 percent premium to the closing price of Palm common stock on 19 December of this year. The Series C preferred stock carries a 0% dividend rate. Elevation will also receive warrants to acquire 7 million shares of Palm common stock at the same price. Prior to 31 March 2009, Palm may elect to cause Elevation to sell up to USD 49 million of this new investment to other investors on the same or better terms than on which Elevation invested. Palm CEO Ed Colligan said that the additional capital from Elevation Partners will enable Palm to put added momentum behind the new product introductions scheduled for 2009 and will provide it with enhanced stability in unsettled economic times. The transaction is expected to close by 31 January 2009, subject to customary closing conditions.

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Entry filed under: Elevation Partners, Mobile, Palm, Smartphone, Telecom, USA, Wireless. Tags: , , , , , , .

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