The cash-constrained Palm (NSDQ: PALM) has extended its runway. The handset-maker has raised $359.9 million in a public stock offering. In addition to the 20 million shares it initially intended on selling for $16.25 apiece, the underwriters were able to sell 3 million more shares, showing that there is pent up demand for the stock despite its uncertain position in the smartphone race.
Palm said will use the proceeds for working capital and general corporate purposes. Palm also reaffirmed its outlook for the year, and its planned product and carrier launches in the second half of Palm’s fiscal year, which ends in May. That conflicts with a report by TheStreet today that says Verizon Wireless (NYSE: VZ) is no longer interested in the Palm Pre or a similar device when Sprint’s exclusive expires early next year.
The company’s stock has been trading higher recently based on rumors that it may be a acquisitions target. While Nokia (NYSE: NOK) was considered a top candidate, it seemed like it was anyone’s guess as to who would find the company attractive. Other names rattled off included Motorola (NYSE: MOT) and Dell. In Palm’s first quarter it sold about 800,000 phones, most of which were from its latest line of webOS products. While those numbers indicate that sales were decent, the company warned that revenues will fall in Q2 based on its dependence on new product launches.