iWeb Communities: Blog

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.