Business
Imaging3 Secures Financing for Reverse Acquisition by Grapefruit Boulevard Investments
Imaging3 Secures Financing for Reverse Acquisition by Grapefruit Boulevard Investments.
About this update from Grapefruit Usa Inc.
[{"type":"text","content":"\nBurbank, CA, May 13, 2019 (GLOBE NEWSWIRE) -- Imaging3, Inc. (OTCQB:IGNG), (“IGNG”) or (the “Company”), a development stage company focused on the introduction of disruptive technologies in the medical imaging industry, is further updating its prior announcements regarding its reverse acquisition (the “Acquisition”) by Grapefruit Boulevard Investments, Inc. (‘GBI”) a privately held Los Angeles based cannabis company and simultaneous vending of its imaging business into a privately held corporation which will be partially owned by post - Acquisition IGNG .\n After carefully considering various proposals, on Sunday May 12, 2019, Imaging3 signed a term sheet issued to it by a private asset management firm (the “Investor”). The term sheet, which is subject to execution of a definitive Securities Purchase Agreement and associated agreements (the “SPA”) which IGNG expects to be finalized this week, calls for the Investor to purchase $4,000,000.00 of convertible notes (the “Notes”) in four Tranches commencing upon execution of the SPA and simultaneous closing of the Acquisition (the “Closing”). Tranche 1 will be for $600,000.00 and will be paid at the Closing. Tranche 2 will be for $1,400,000 and will be paid the day IGNG files a registration statement registering the shares underlying the convertible notes which the Company believes will be on or before June 7, 2019. Tranche 3 of $1,000,000 will be paid upon effectiveness of the S-1 registration statement, which the Company believes will occur on or before August 15, 2019. The final Tranche of $1,000,000.00 will be paid subsequent to effectiveness of the registration statement. The Notes will mature 24 months from date of issuance and will be redeemable until maturity at 150% of the remaining balance on a given redeemed Note. The Notes will be convertible into shares of IGNG common stock at 95% of the mathematical average of the five lowest trading prices for IGNG common stock on the OTCQB for the period from the Closing to the maturity date of the Note being converted less $0.01 for conversions at less than $0.15 and less $ 0.02 for conversions at more than $0.15. In addition to the Notes, at the closing IGNG will issue to the Investor a warrant to purchase 16,000,000 shares of its ...