iWebGate secures Lind funding deal

Local tech company iWebGate has signed a $US8.6 million ($A11.4 million) funding deal with an entity managed by US-based Lind Partners to help grow its business.

The convertible note agreement will provide iWebGate with up to $US8.6 million in stages, and allows the company to issue shares to the investor at “prices that are linked to prices prevailing at the time, potentially at premiums to the present share price”.

Under the terms of the deal, iWebGate will immediately receive $US1.7 million when the agreement is executed and, over a period of two years, receive $US75,000 per month.

Upon mutual consent, iWebGate may increase the amount of each tranche to up to $US300,000 per month.

The investor will fund each tranche at the beginning of the month, while iWebGate will issue shares to the investor at the end of the month, at 90 per cent of the average of three volume weighted average prices chosen at the investor’s discretion, providing it’s during the specified period before the issuance date.

iWebGate is able to terminate the agreement at any time and at no cost.

The company will also issue 10 million shares to the investor; however, they will be credited or returned to iWebGate once the company has met all of its obligations.

“Securing this funding substantially assists the company to accelerate its growth strategy across its core geographic markets to access further government, enterprise and small business customers,” recently appointed iWebGate chairman James Tsiolis said.

“The team at Lind has a long history of successful investments in technology.”

iWebGate shares closed 18.5 per cent lower to 11 cents each.