New Issue: Onstream Media completes $750,000 tranche of $1 million placement of convertibles

By Devika Patel

Knoxville, Tenn., April 20 - Onstream Media Corp. arranged a private placement of a 12% two-year unsecured subordinated promissory note for up to $1 million on April 16, according to an 8-K filed Monday with the Securities and Exchange Commission. The company already has raised $750,000 in this placement with investor Rockridge Capital Holdings, LLC.

Up to $250,000 of the note will be convertible into a number of restricted shares of ONSM common stock. The conversion price will be a 20% discount to the fair market value of the average closing bid price for the company's common stock for the 20 trading days prior to conversion, but cannot be less than $0.40 per share.

Based in Pompano Beach, Fla., Onstream is an online application service provider of audio and video communications.

Issuer:	Onstream Media Corp.
Issue:	Unsecured subordinated promissory note
Amount:	$1 million
Maturity:	Two years
Coupon:	12%
Price:	Par
Yield:	12%
Conversion rate:	20% discount to average closing stock price for 20 trading days prior to conversion, floor of $0.40 per share
Warrants:	No
Investor:	Rockridge Capital Holdings, LLC (for $750,000)
Settlement date:	April 16 (for $750,000)
Stock symbol:	Nasdaq: ONSM
Stock price:	$0.29 at close April 16
Market capitalization:	$11.7 million

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