Salon.com said it has raised $714,000 by issuing some convertible notes and warrants, in the company's latest efforts to keep afloat. In a filing with the SEC, the company said it would use the money for working capital and other purposes. The warrants give shareholders the right to buy 357,000 shares of Salon stock at an exercise price of 21 cents per share.
As part of the funding venture, board members Rob McKay, Brian Dougherty and John Warnock invested a total of about $365,535 in exchange for warrants to purchase shares. Although Salon.com gained popularity by bringing quality magazine-style writing to the Web and breaking several high-profile stories during the Clinton administration scandals, it has suffered in the face of a depressed advertising market, like many other Internet publications.