UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report:
(Date of earliest event reported)
February 23, 2016
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MEDICAL IMAGING CORP.
(Exact name of registrant as specified in charter)
NEVADA
(State or other Jurisdiction of Incorporation or Organization)
333-1364363 | 848 N. Rainbow Blvd. #2494 Las Vegas, Nevada 89107 | 98-0493698 |
(Commission File Number) | (Address of Principal Executive Offices and zip code) | (IRS Employer Identification No.) |
(877) 331-3444
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12(b) under the Exchange Act (17 CFR 240.14a-12(b))
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01 Entry into Material Definitive Agreement.
On February 25, 2016, Medical Imaging Corp. (the “Company”) sold to Grenville Strategic Royalty Corp. (“Holder”) a convertible note for the principal amount of $500,000. The Note pays interest monthly at an annual rate of 25%.
From July 30, 2016 through to August 31, 2017 the Holder may elect to convert the Note into a temporary royalty and receive a monthly payment equal to a specified percentage of the Company’s revenue for the previous month, subject to certain minimum payments, in lieu of interest payments. However, in such case the Company may still buy back the temporary royalty for the original face value of the Note.
If the Note is outstanding as of August 31, 2017, then the Note may be converted into a permanent royalty based on the revenues of the Company (the “Royalty”) at the Holder's election, subject to certain minimum payments.
Proceeds from the Note were used primarily to reduce short term debt, with the remainder to be used for general working capital purposes. As required by the Note, $15,000 was retained for the hiring of a Financial Advisor for the Company and approximately $8,000 for legal fees.
The Holder will maintain a security interest in the Company until such time as the Note is retired, the Company raises $1,200,000 in additional capital, or the Note is converted into the Royalty.
On February 23, 2016 the Company sold a bridge convertible promissory note (the “Bridge”) for $100,000 to a private investor. The Note pays interest monthly at an annual rate of 12%. As an inducement to sell the Bridge the investor was also given 100,000 shares of common stock of the Company.
The Bridge is due on February 23, 2017 but may be converted into a future financing of notes sold by the Company.
Proceeds from the Bridge were used primarily to reduce short term debt with the remainder as for general working capital purposes. The Company paid $15,000 in legal and administration fees in connection with the Bridge.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.
| Medical Imaging Corp. | |
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Dated: February 29, 2016 | By: | /s/ Mitchell Geisler |
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| Name: Mitchell Geisler |
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| Title: Chief Executive Officer |
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