ONSTREAM MEDIA CORPORATION (OTCMKTS:ONSM) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 Entry into a Material Definitive Agreement As we have previously reported, the Sigma and Rockridge notes were both due in full on December 31, 2016 for a combined principal repayment of $1.0 million. The Sigma note was modified effective December 30, 2016 to require a principal repayment of $250,000, which we made on January 3, 2017, and to extend the remaining $350,000 balance due for another six months, to June 30, 2017. Under the modification, we also made a payment of $25,000 to Sigma on January 3, 2017, representing the full amount of interest to be paid from January 1, 2017 through June 30, 2017, which is fully in lieu of the interest that would be otherwise payable based on the 17% per annum interest rate stated in the note. In addition, the modification provides that the monthly advisory fee previously payable to Sigma will be reduced from $10,000 per month to $8,500 per month for the six months ended June 30, 2017. The modification also provides that no further principal payments beyond previously made principal payments as well as the $250,000 principal payment referenced above were required or will be required as a result of our receipt of proceeds from the sale of customer accounts of our subsidiary Infinite Conferencing.
We have recently requested that Rockridge extend the $400,000 due on their note for another six months, to June 30, 2017, and such extension is a condition of the above modification of the Sigma note. In the event such extension is granted in accordance with our request, we will continue to pay interest at 12% per annum and we will increase the origination fee due thereunder by fifty thousand (50,000) common shares, for a cumulative origination fee of eight hundred sixty-six thousand six hundred sixty seven (866,667) restricted common shares, none of which shares have yet been issued and are in lieu of any other origination fees thereunder.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this document and elsewhere by Onstream Media are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such information includes, without limitation, the business outlook, assessment of market conditions, anticipated financial and operating results, strategies, future plans, contingencies and contemplated transactions of the company. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors which may cause or contribute to actual results of company operations, or the performance or achievements of the company or industry results, to differ materially from those expressed, or implied by the forward-looking statements. In addition to any such risks, uncertainties and other factors discussed elsewhere herein, risks, uncertainties and other factors that could cause or contribute to actual results differing materially from those expressed or implied for the forward- looking statements include, but are not limited to fluctuations in demand; changes to economic growth in the U.S. economy; government policies and regulations, including, but not limited to those affecting the Internet. Onstream Media undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. 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.
About ONSTREAM MEDIA CORPORATION (OTCMKTS:ONSM)
Onstream Media Corporation is an online service provider of live and on-demand Internet video, corporate audio and Web communications, and content management applications. The Company operates through two segments: Audio and Web Conferencing Services Group, and Digital Media Services Group. The business activities of the Audio and Web Conferencing Services Group include selling telephone related services to business customers, such as conference calling, voicemail, text messaging and network collaboration. The business activities of the Digital Media Services Group are primarily selling Internet related services to business customers, such as Webcasting, date storage and data streaming. The Audio and Web Conferencing Services Group consists of its Infinite Conferencing division, its Onstream Conferencing Corporation division and its EDNet division. The Digital Media Services Group consists primarily of its Webcasting division and its Digital Media Services Platform division. ONSTREAM MEDIA CORPORATION (OTCMKTS:ONSM) Recent Trading Information
ONSTREAM MEDIA CORPORATION (OTCMKTS:ONSM) closed its last trading session 00.000 at 0.201 with 334 shares trading hands.