Local.com gets $8 million in financing

Local.com Corp., which provides technology and services for helping retailers advertise and consumers search for locally available products, has received $8 million in financing from Hearst Interactive Media and Greenway Capital.

Local.com says it will use the financing for general working capital and strategic initiatives. The company’s Local.com lets consumers search the Internet to find local retailers and product offers. It also offers LocalConnect, a customizable search application that web sites can deploy to help visitors find local stores and other businesses; plus versions of Local.com designed for mobile phones and text-messaging.

“Local.com is well positioned to capitalize on the consumer and advertiser trends that are delivering growth in the emerging local search advertising industry,” says Kenneth Bronfin, president, Hearst Interactive Media. “We believe Local.com has the right strategy and can become a leader in this area.”

The $8 million investment consists of 9% convertible debentures due February 2009 and convertible into 1,990,050 shares of Local.com’s common stock at a conversion price of $4.02 per share. Local.com 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 common stock at a price of $5.63. The warrants are exercisable through February 2012. Local.com’s closed on the Nasdaq yesterday at $4.31, compared to a 52-week high of $6.60 and a 52-week low of $3.05.