Smartphone specialist Palm has signalled its confidence in its new Pre handset as a challenger for the iPhone, with the announcement that it planning an equity offering to finance a multi-million pound advertising campaign.
A statement issued by the company revealed that it hopes to raise around £75 million through the plan.
This is to be garnered by way of a public offering of some 23.125 million shares which will sell at around £4.50 per share, according to a report from business news provider Forbes.
The fund raising exercise comes amid fears that the beleaguered company would struggle to finance the roll-out of the new touchscreen operated handset.
The difficulties currently facing the firm were highlighted recently when it admitted that preliminary estimates showed a 70 per cent fall in sales during the third quarter of last year.
However, despite Palm's high-profile problems Elevation Partners co-founder Roger McNamee, whose Elevation Partners hedge fund is one of the key investors in Palm, recently predicted that the phone would outperform the iPhone when it is released later this year.
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