New $3 Million Financing Agreement for Web Hosting Provider iWeb
March 19, 2010 – (HOSTSEARCH.COM) – iWeb Group Inc. (TSX-V: IWB), a global provider of Internet hosting services and IT infrastructure, confirms the conclusion of a $3 Million USD financing agreement with Goldman Sachs.
"This funding will be used to complete the infrastructure for the first phase of iWeb’s latest Montreal data center. Estimated at just over $ 2.5 Million, infrastructure construction work should be completed during the upcoming weeks” says Philip Tousignant, iWeb’s Chief Financial Officer. “iWeb’s fourth data center should be putting its first servers online this summer; these new servers will be provisioned using a new automated process."
The $3 Million USD financing agreement is in addition to the $10 Million USD agreement previously obtained from Goldman Sachs in August 2008. Totalling $13 Million USD, the loan will be subject to a 17% interest rate and matures in August 2013. The new portion of the loan also carries a premium based on the value of the Company’s shares, payable at maturity in 2013.
About iWeb Group Inc.
iWeb is a worldwide provider of Internet hosting services and IT Infrastructure. With the opening of its fourth data center in Montreal, iWeb's total capacity will near 35,000 dedicated servers. Since 2004, the company's compounded annual growth rate has been above 75%, making it one of Canada's 100 fastest growing companies according to PROFIT Magazine.
Founded in 1996 in Montreal, iWeb now generates more than 60% of its revenues from abroad; and employs over 170 full-time employees providing Dedicated Server Hosting, Co-location and Web Hosting services to close to 20,000 customers in more than 145 countries. iWeb's shares are listed on the TSX Venture Exchange (TSX-V: IWB).
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