June 17, 2004 — (WEB HOST INDUSTRY REVIEW) — Content delivery services provider VitalStream (vitalstream.com) announced on Wednesday that it has raised $11 million through a financing deal. VitalStream will issue approximately 17.9 million shares of common stock and warrants to purchase an additional approximately 5.4 million shares of common stock.
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The company said it intends to use the proceeds for general corporate purposes, including investment in research and development, facilitation of strategic acquisitions and related costs, strengthening its balance sheet to attract new customers, obtaining more favorable terms from vendors, and satisfying certain qualification criteria for listing on the Nasdaq SmallCap Market or other exchange.
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Vitalstream also announced that Phil Sanderson, a general partner at WaldenVC, the lead investor in the transaction, is joining VitalStream’s board of directors on June 30, 2004.
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“These funds will help enhance our already strong technology and customer service capabilities and increase our leadership position in the delivery of rich media digital content, a fast growing market,” says Paul Summers, president and chief executive officer of VitalStream. “This transaction also greatly strengthens our balance sheet and simplifies our capital structure, enabling VitalStream to meet the shareholders’ equity requirements for possible listing on the Nasdaq SmallCap Market or other exchange.”
