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.

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