Iceweb Executes $1.2 Million Convertible Debenture

IceWEB, Inc. has executed a convertible debenture agreement with Sand Hill Finance, LLC in the amount of $1,170,767. The debenture bears interest at 18% and will allow SHF to convert the outstanding obligation into shares of IceWEB common stock at a fixed floor conversion price of $0.30 per share. In conjunction with this agreement, IceWEB entered into a Warrant Amendment Agreement pursuant to which the Company agreed to amend the exercise price on outstanding warrants issued to SHF to purchase 145,000 shares of IceWEB common stock by lowering the exercise price on these warrants to $0.50 per share from $1.00 per share.

Mark B. Lucky, Chief Financial Officer of IceWEB, Inc. said: “Sand Hill Finance has been a great partner and has continued to work with us to restructure our debt financing. This agreement will give us more financing options and offers us greater financial flexibility. Our ability to secure financing with a fixed floor is substantial given the current market climate.”