Qualcomm investing $10m in Handspring

Handspring is boosting its financial base by nabbing a $10m investment from Qualcomm and offering $38.5m of new stock for sale to the public.

The maker of Visor handhelds said in a statement on Wednesday that it would use the cash for "general corporate purposes", which could include investments in new technologies and acquisitions of "complementary businesses".

San Diego-based Qualcomm, which makes develops and delivers digital wireless communications products, will buy slightly more than 1.8 million shares in Handspring for $10m, according to the statement.

Mountain View, California-based Handspring will offer seven million extra shares to the public for $5.50 apiece. Handspring stock closed on Monday at $6.12.

The company recently reiterated plans to become profitable during its 2002 fiscal year, which begins in July.

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