Onstream Media Corporation Receives Proceeds of $2,050,000
Pompano Beach, FL Feb 17, 2005
Onstream Media Corporation ( OTC: ONSM), a business services provider of video and rich media communication, webcasting and digital asset management services, today reported that purchasers of the Company's 8% senior secured convertible notes have exercised their additional investment rights in a private transaction. Gross proceeds to Onstream Media from this exercise amounted to $2,050,000, which the Company intends to use for general working capital.
In connection with such exercise, Onstream Media issued an additional $2,050,000 principal amount 8% senior secured convertible notes due four years from the date of issuance, with all other terms of the notes being identical to the currently outstanding $4.35 million principal amount 8% senior secured convertible notes. In connection with this exercise of the additional investment right, Onstream Media issued five year common stock purchase warrants to purchase an aggregate of 717,500 shares of its common stock at an exercise price of $1.65 per share. Additionally, upon shareholder approval the Company will issue common stock purchase warrants to purchase an aggregate of 2,050,000 shares of its common stock at an exercise price of $1.00 per share, with a term of one year. Upon the exercise of the $1.00 warrants, the warrant holder will receive additional five year common stock purchase warrants to purchase 50% of the shares of common stock acquired upon the exercise of the $1.00 warrant at an exercise price of $1.65 per share.
About Onstream Media Corporation
Onstream Media is a business services provider that specializes in video and rich media communication, webcasting and digital asset management services. Utilizing processing and distribution software, Onstream Media provides encoding, editing, indexing and querying services. Onstream Media's objectives in this service segment of its business continues to be the building of a fully robust, comprehensive Digital Asset Management (DAM) feature set that virtually any company, government agency or other enterprise having a need to manage rich media content will be able to utilize in an affordable and highly secure environment. For more information, visit the Onstream website at http://www.onstreammedia.com.
Barry A. Rothman
Onstream Media Corporation
Equity Performance Group
781-444-6100, Ext. # 629
This press release contains forward-looking statements, some of which may relate to Onstream Media Corporation (formerly known as Visual Data Corporation), and which involve numerous risks and uncertainties. Actual results, performance or achievements could differ materially from those anticipated in such forward looking statements as a result of certain factors, including those set forth in Onstream Media Corporation's filings with the Securities and Exchange Commission.et forth in Visual Data Corporation's filings with the Securities and Exchange Commission.