IceWEB Retires Debt With Sand Hill Finance

IceWEB, Inc. announced that Sand Hill Finance agreed to convert IceWEB’s entire long-term debt at $0.36338 per share, a 37% premium to the current stock price of $0.265 per share.

In exchange for three million shares of IceWEB common stock, Sand Hill has agreed to retire $1,090,136 of its convertible debenture, which was accruing interest at an annual rate of 18%.

"Sand Hill Finance is proud to have been a source of capital for IceWEB’s early stage growth," stated Sand Hill Finance’s President, Mark Cameron. "We now believe this is an opportune time to convert a significant part of our debt and are very pleased with the price we were able to receive in the conversion. With the recent acquisition of 3PAR and the increasing investor interest in the data storage market, our management team saw this as a great opportunity and an excellent time for us to take an equity position in the Company."

Mark Lucky, IceWEB’s Chief Financial Officer added: "The retirement of this debt under these circumstances means that we have been able to reduce our total liabilities by more than $1,000,000 during the last fiscal year, as we continue taking steps to strengthen our balance sheet. This transaction demonstrates the confidence that Sand Hill Finance has in our performance to-date and our plans moving forward. The decrease in our debt service will allow us to expend our resources on growing the business, and this significantly enhances the Company’s financial position moving forward. Sand Hill Finance has been a great partner and we appreciate their support and vote of confidence."