IRVINE, CA – Local.com Corporation (NASDAQ: LOCM), a leading local search engine, today announced the sale of 2,356,900 shares of its common stock to two institutional investors in a private placement transaction for $5.50 per share.
The gross proceeds of approximately $13 million are expected to be used for acquisitions, to expand direct sales channel development, to protect the company’s growing intellectual property portfolio, and for general working capital.
In connection with the sale of common stock the company also issued to the investors warrants to purchase up to 471,386 additional shares of the company’s common stock at a price of $7.89, exercisable beginning February 1, 2008 and for a period of five years thereafter; and up to 471,386 additional shares of the company’s common stock at a price of $9.26, exercisable beginning February 1, 2008 and for a period of six years thereafter.
The shares are not registered under the Securities Act, or any state securities laws, and were sold in a private transaction under Regulation D. Unless the shares are registered, they may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state laws. Local.com has agreed to file a registration statement covering resale by investors of the privately placed common stock, including the common stock issuable upon conversion of the warrants discussed above.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the security laws of such jurisdiction.
GunnAllen Financial acted as placement agent for Local.com on the transaction.
Local.com (NASDAQ: LOCM) is a Top U.S. website attracting approximately 10 million visitors each month seeking information on local businesses, products, services, and jobs. Local.com is also one of the largest local search syndication networks, publishing business information on over 400 regional media sites. Powered by the company’s patented local web indexing and Keyword DNA® technologies, Local.com provides users with targeted, relevant local search results, including special offers from local businesses, user reviews, local businesses’ website links, maps, driving directions and more. Businesses can advertise on Local.com with subscription, pay-per-click, banner and pay-per-call ad products. The site’s mobile service, Local Mobile™ provides local search results via mobile phones and devices. Local.com claims U.S. patent numbers 7,231,405 and 7,200,413. For more information visit: www.local.com.