October 2, 2003 — (WEB HOST INDUSTRY REVIEW) — VitalStream Holdings Inc, parent company of VitalStream Inc. (vitalstream.com), a provider of Web hosting, managed servers and media streaming, said today it had received additional financing from certain members of its executive management team and investment funds managed by Dolphin Equity Partners.
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According to VitalStream, affiliates of Dolphin Equity Partners purchased $550,000 in shares of 2003 Series A Preferred Stock. Members of VitalStream’s executive management purchased $350,000 in the same securities on the same terms as Dolphin Equity Partners.
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“This financing and note restructure is the first step in accomplishing our goal of moving the company onto a major exchange such as the NASDAQ or the AMEX,” said Paul Summers, president and chief executive officer of VitalStream. “Dolphin’s and executive management’s investment underscores their respective belief in the future success of VitalStream. In addition, the new equity investment and note restructure will strengthen our balance sheet as well as improve the Company’s cash flow from the deferral of interest and dividend payments.”
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The company also said it restructured the $1.1 million in outstanding convertible promissory notes to Dolphin Equity Partners.
