Town have revealed that they have received an initial fee of £340,000 for Sam Parkin, who has signed a three-year deal with Luton. However, that could rise to £500,000 based on top-ups likely to relate to appearances and goals.
Boss Jim Magilton told the club site: "Unfortunately the move here never really worked out for Sam, which happens in football.
"The fee we have agreed with Luton represents good business on our behalf and adds to the budget I already have available to bring in new additions.
"We have been on a constant look-out for players that will add to the quality we feel we need at this club and I hope to have at least one new addition to the squad by the time the transfer window closes at the end of August."
Parkin joined the Blues from Swindon for £450,000 a year ago. The 25-year-old striker chose Luton ahead of Preston, who also had a bid of a similar amount accepted by the Blues.
Magilton would ideally like to bring in new striker, a central defender and a right-back before the transfer window closes next Thursday. The new frontman could be Bohemians' Republic of Ireland U21 international Stephen Ward in whom the Town boss admitted a strong interest yesterday.
In addition to the £340,000 from Parkin's sale, the Blues received £400,000 for Ian Westlake from Leeds as part of the deal which saw Dan Harding move to Portman Road.
Magilton also has cash from the recent share issue which TWTD understands brought in just under £600,000 including new loan notes, not the higher figure being quoted elsewhere.
However, some of this cash is likely to have already been allocated to pay the wages of new signings Alex Bruce, Dan Harding and Martin Brittain, while the Blues may also be contributing to the wages of loanees Mark Noble and Simon Walton. Additionally, striker Billy Clarke recently signed a new contract.