IceWEB Completes $2.5 Million in Private Placement Offering

IceWEB, Inc. has received gross proceeds of approximately $2.5 million in a private placement offering to institutional and accredited investors.

In conjunction with the closing, the Company issued approximately 12.5 million shares of its restricted common stock at a price of $0.20/share and warrants to purchase approximately 6.25 million shares of its common stock at a strike price of $0.40 per share. The warrants are callable should the stock trade above $0.50 for ten straight trading days and have a one year expiration. There is no cashless exercise provision on the warrants.

John R. Signorello, IceWEB’s Chief Executive Officer, commented: "Regardless of the economic climate, data storage remains pervasive. IceWEB has the right products in the right space with the right management team. Additional working capital will allow the Company to restructure the senior debt facility and provide a runway for our management team to execute on our channel strategy."

Jesup & Lamont served as the Company’s exclusive placement agent for the transaction.