iWeb Communities: Blog

We obtained new financing of $1,000,000 from the Bank of Montreal (BMO), over and above funds previously announced.

The additional amount will go toward purchasing server hardware to provide iWeb?s clients with dedicated server services, one of iWeb’s niche market that is enjoying substantial growth. It may also be used to acquire other computer equipment for the company?s two data centers. As things now stand, these funds will allow for acquisitions beyond the financial year ended September 30, 2007 and through the first quarter of 2008.

After financing the expansion of our data centers, it was time to fund the purchase of servers to be installed, for the most part, in phase two of the iWeb-CL facility. It?s mainly by leasing out this hardware that the company will be able to maximize returns on its investment.

The additional debt will take the form of a 36-month term credit of $1,000,000, at a rate of prime plus 2.5 %.

Read the complete press release here.