June 1st 2006, iWeb Group Inc (TSX-V: IWB), announces obtaining $1,350,000 of new credit facilities that, added to the 1,525,000$ financing announced on February 23th, brings the total new credit facilities for 2006 to $2,875,000.
A 500,000$ subordinated loan payable in 5 years has been granted by the Development Bank of Canada (BDC) to raise the Company’s capital and enforce its position with financial institutions that could provide additional funds. Furthermore,the Bank of Montreal granted a rotating credit arrangement of 750 000$ to finance hardware aquisition such as servers and network equipments. Advances under this agreement will be repaid over two years. The Bank of Montreal also granted a 100,000$ credit line.
Those new financing agreements are additional to the 1,525,000$ granted by the Development Bank of Canada last February for the acquisition and construction of a new data center that will be operational in June of 2006.
“We are proud that the BDC has faith in iWeb and granted us repeated financings. We are also happy to welcome the Bank of Montreal as a financing partner.“, says Eric Chouinard, President and CEO of iWeb. “This new agreement gives iWeb the required liquidity to maintain its growth.” he added.
About iWeb Group Inc.
Founded in 1996, iWeb offers a full line of advanced web hosting services either through shared hosting, dedicated servers or colocation in its own data centers featuring the latest technological equipments. Its services are rendered in English, French or Spanish to clients in more than 95 countries.
iWeb Group Inc. is listed on the TSX Venture Exchange under the IWB stock symbol. For more information, visit the Company’s website at investors.iweb.ca.
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