Hearst's Stake in Local.com: Not News

Hearst Communications disclosed in an amended SEC filing that it beneficially owns 22.4% of Local.com (LOCM), lending support to shares. This is not news. Earlier in a March filing, Hearst reported its stake, consisting of the following:

(i) a note convertible into 1,492,537 shares of LOCM at a conversion price of $4.02 per share.
(ii) the Series A Warrant to purchase 597,105 shares of LOCM at an exercise price (subject to adjustment) of $4.82.
(iii) the Series B Warrant to purchase an aggregate of 597,105 shares of LOCM at an exercise price [subject to adjustment] of $5.63.

The March filing listed the stake at 22%; Thursday’s amendment bumps the stake up to 22.4%.
Hearst’s ownership is a strong positive for LOCM, but investors should recognize the stake relates to the March financing, and is not news.

DISCLOSURE: No position.

Comments

[suzy obrien:]

ah, but it is news to those who did not have an eye on the stock back in march.

2007 Jul 09 07:36 AM