Terms revealed in acquisition of two KC tech firms
A federal filing sheds some light on a six-month acquisition of two Kansas City Internet service providers.
Last week, IceWeb Inc. (OTC: IWEB) announced it had closed on its purchase of Computers & Tele-Comm Inc[6]. and KC Nap LLC.
IceWeb's CEO divulged no details on the long transaction, other than to call it "complex."
RELATED: IceWeb snags two local ISPs in 'complex transaction'[7]
A subsequent filing[8] with the Securities and Exchange Commission[9] shows IceWeb, a cloud storage software company and device manufacturer from Sterling, Va., paid off some of CTC's debt, entered into a $1.4 million lease agreement and picked up the companies in a stock exchange.
Here's how the deal terms played out, according to the filing:
• IceWeb bought all of KC Nap's and CTC's outstanding common stock in exchange for nearly 9.6 million shares of IceWeb stock, which traded for roughly 2 cents a share on Tuesday[10].
• IceWeb also retired debt from CTC and its prior owner, Wichita-based Streamside Partners LLC, amounting to $422,823 in exchange for nearly 13.5 million IceWeb shares.
• IceWeb also entered into a three-month, $1.4 million lease agreement tied to the acquisition with Agility Ventures LLC, which received 1 million shares of IceWeb restricted common stock, plus a common stock warrant covering 3.675 million shares with a two-year term and conversion price of 55 cents a share.
Alyson reports about technology/telecommunications, entrepreneurship and sustainability.
References
- ^ Alyson Raletz (feeds.bizjournals.com)
- ^ This email address is being protected from spambots. You need JavaScript enabled to view it. (feeds.bizjournals.com)
- ^ Twitter (twitter.com)
- ^ Google+ (plus.google.com)
- ^ LinkedIn (www.linkedin.com)
- ^ Computers & Tele-Comm Inc (www.bizjournals.com)
- ^ IceWeb snags two local ISPs in 'complex transaction' (www.bizjournals.com)
- ^ subsequent filing (www.sec.gov)
- ^ Securities and Exchange Commission (www.bizjournals.com)
- ^ which traded for roughly 2 cents a share on Tuesday (finance.yahoo.com)