Local Corporation To Raise $5 Million

IRVINE, Calif.–(BUSINESS WIRE)– Local Corporation (NAS: LOCM) , a leading online local media company, today announced that it has entered into a definitive agreement with The Tail Wind Fund Ltd., as lead investor, to sell $5 million in convertible subordinated notes and warrants to purchase common stock. The proceeds are to be used for general working capital.

The convertible subordinated notes bear interest at 7 percent per year and are convertible into shares of Local Corporation‘s common stock at $2.01 per share, representing a 14.2 percent premium to the company’s closing price on April 9, 2013. In connection with the sale of the convertible notes, the company also issued to the investors warrants to purchase 746,268 shares of common stock at an exercise price of $2.01 per share. The convertible notes mature on April 11, 2015. The warrants are exercisable through April 11, 2018.

“This investment represents a welcome endorsement of our long-term strategy, which is dedicated to sustaining strong revenue and earnings growth through building competitive advantages in the markets we serve,” said Heath Clarke, Local Corporation chairman and CEO. “It allows us to improve our liquidity and fund our key growth initiatives.”

“We believe that Local Corporation is well-positioned to capitalize on the growing revenue opportunities within the local online advertising market,” said Daniel Nye, Portfolio Manager for CIM Investment Management Ltd., the fund manager of The Tail Wind Fund Ltd. “We are looking forward to the company’s future growth opportunities and continued success.”

Merriman Capital, Inc., a wholly owned subsidiary of Merriman Holdings, Inc. (OTCQX:MERR) acted as lead Placement Agent and Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann Financial Services Inc. (NYSE MKT:LTS) assisted on the transaction.

About Local Corporation

Local Corporation (NAS: LOCM) is a leading online local media company that connects brick-and-mortar businesses with over a million online and mobile consumers each day using a variety of innovative digital marketing products. To advertise, or for more information, visit: http://localcorporation.com.

Forward Looking Statements

This press release contains certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of

From: http://www.dailyfinance.com/2013/04/11/local-corporation-to-raise-5-million/