MONTREAL, Aug. 27 /CNW Telbec/ - iWeb Group Inc. (TSX.V: IWB, "iWeb" or
the "Company") and Goldman Sachs Credit Partners L.P. ("Goldman Sachs") today
announced a $ 22M financing agreement.
"With this agreement, Goldman Sachs will provide financing to allow us to
further our business objectives." declared Eric Chouinard, iWeb Chief
Executive Officer. "A deal of this magnitude will allow us to continue
investing in the infrastructures which are vital to maintaining our growth,
which has been outstanding thus far." added Marc Guindon, Vice-President and
Chief Financial Officer.
iWeb will initially receive $ 10M USD in senior debt, 5 years, 16% and
$ 1M in common shares will be issued to Goldman Sachs at $ 1.30 per share,
these common shares will be subject to a four-month hold period. A subsequent
$ 1M in shares will follow at $ 1.30, subject to certain market conditions.
Under the second part of the agreement, Goldman Sachs can provide an
additional $ 8M in senior debt with $ 2M in shares to be issued at market
price, all subject to certain conditions and performance indicators.
This agreement will cover iWeb's financial requirements for the long term
growth of the company's data centers, as well as its dedicated server leasing
and web hosting operations.
Share prices are in CAD unless otherwise specified
About iWeb Group Inc.
Founded in 1996, iWeb is today one of the leading Canadian providers of
advanced IP hosting services through shared hosting, dedicated servers or
co-location in three data centers, featuring over 48,000 square feet of floor
space and the latest technological equipment. iWeb provides services in
English, French and Spanish to more than 14,000 clients from more than
135 countries. For more information, please visit the Company's website at
Caution concerning forward-looking statements
This news release contains certain forward-looking statements. These
statements relate to future events or iWeb's future economic performance and
reflect the current assumptions and expectations of management. Certain
unknown factors may affect the events, economic performance and results of
operations. iWeb undertakes no obligation, and does not intend to, update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required under applicable law.
The TSX Venture Exchange does not accept responsibility for the adequacy or
accuracy of this news release.
For further information:
For further information: Bernard Dahl, Director, Communications and
Public Relations, iWeb Group Inc., (514) 286-4242 ext. 115, email@example.com;
Marc Guindon, Vice-President and Chief Financial Officer, iWeb Group Inc.,
(514) 286-4242 ext. 121, firstname.lastname@example.org