Local.Com Private Placement Holders Register Shares After 3 Weeks (LOCM)

Local.com (NASDAQ:LOCM) last night had an SEC Filing that was registering 3.393 million shares for sale, although many of these aren’t going to be hitting the market based on conversion prices.  These are not new shares from the company per se because these are all from selling stockholders who received shares in a very recent private placement.  Here is the breakdown:

2,356,900 shares of common stock sold in a private placement transaction on July 31, 2007; and 1,037,036 shares of common stock which are issuable upon the exercise of warrants which were issued on August 1, 2007 in a private placement transaction.

These shares are from that $13 Million private placement completed only about 3 weeks ago, with the 2.3569 million shares being sold to two institutions at $5.50 per share and the rest being in warrants connected to those shares.  These warrants have higher strike prices, but this being 3 weeks into that private placement period is generally speaking far shorter than most registrations of unregistered securities from a private placement.

Shares closed at $5.09 yesterday and indications have not really been seen yet for trading today.

Jon C. Ogg
August 21, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.