Palm: Raising Cash for an iPhone Battle

Palm Inc said on Monday that it would raise about 105 million U.S. dollars by issuing 18.5 million shares. Palm has been considering raising funds for the launch of Palm Pre in the first half of 2009. After all, Palm is a small company and needs more funds during the promotion and sales of its new model Pre. Last week, Palm said that its revenue might be below expectations due to the slowing sales of old models. In a statement, Palm said, "The raised funds will be used to strengthen Palm's working capital, the launch of Pre smartphones and future product development."