RealTime IT News

HomeSeekers.com Inc. Raises $8.7 Million

HomeSeekers.com Inc., a provider of online residential real estate listings and related information, said it closed on $8.7 million in a private placement of its unregistered common stock to institutional and other accredited investors.

The transaction was priced at $3 per share, which approximated the market price at the time of valuation.

Noting that HomeSeekers recently announced an agreement to provide real estate listing aggregation services for Microsoft's real estate Web site, Chief Executive Officer Greg Johnson said, "We have established four separate but highly synergistic sources of revenue that position HomeSeekers for rapid growth.

"In addition to fees for data aggregation services, we generate revenue from sales of banner advertising on our Web site; from sales of dedicated Web sites to Realtors; and from positioning fees and revenue sharing related to our proprietary Vertical Application Browser (VAB), Realty 2000 Net `98," he added.

He said that the company plans to use the proceeds for strategic acquisitions, debt reduction, expansion of its sales and marketing programs and for working capital. "We also plan to seek listing on the NASDAQ system as soon as possible," he said.

HomeSeekers.com currently has aggregated approximately 670,000 real estate listings on its Web site and claims more than 15 million homepage views per month.