iBroadband defaults on notes issued to Laurus

By Susanna Moon

Chicago, July 30 - Laurus Capital Management, LLC, on behalf of Laurus Master Fund, Ltd. notified iBroadband, Inc. that the company defaulted under the terms of notes dated Nov. 7, 2006, according to an 8-K filing with the Securities and Exchange Commission.

The company said that Laurus is entitled to pursue rights and remedies under the agreements.

According to SEC filings, on Nov. 7, 2006, iBroadband, Inc. and its subsidiaries entered into a securities purchase agreement with Laurus Master Fund, Ltd., in which the company sold Laurus Funds two promissory notes and a warrant.

One of the notes was a secured term note in the principal amount of $2.5 million and the other was a secured non-convertible term note in the additional principal amount of $2.5 million. Each of the notes had a three-year term and bore interest equal to the prime rate plus 2% subject to a floor of 10% per year.

The investor also received a warrant for up to 4 million shares.

iBroadband is based in Farmers Branch, Texas.

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