Local.com Announces $8 Million Financing

Feb 27, 2007


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Local.com Corporation, a provider in the local search industry, has announced an $8 million private placement to Hearst Interactive Media, a division of Hearst Corporation, and Greenway Capital. The proceeds are to be used for general working capital and strategic initiatives. The investment consists of 9% convertible debentures due February 2009. The convertible debentures are convertible into 1,990,050 shares of the Company's common stock at a conversion price of $4.02 per share. In connection with the sale of the convertible debentures, the company also issued to the investors warrants to purchase up to 796,020 additional shares of the company's common stock at a price of $4.82 and up to 796,020 additional shares of the company's common stock at a price of $5.63. The warrants are exercisable through February 2012. GunnAllen Financial acted as investment banker for Local.com on the transaction.

(www.hearst.com; www.local.com)