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NEWS OUT 6/6/2017




Imaging3 Announces $500,000 Debt Financing

Burbank, CA, June 6, 2017 (GlobeNewswire): Imaging3, Inc. [OTCQB:IGNG] announced today that on May 25, 2017 the Company completed the sale of $500,000 of Convertible Promissory Notes (the “Notes“) to two accredited investors (the “Investors”) that are due May 23, 2018 (the “Maturity Date”). After transaction costs, the company netted $470,000 from the sale of the Notes.

These Notes bear interest at the rate of 12% per annum to the Maturity Date and may be redeemed by the Company for 125% of face value within 90 days of issuance and at 135% of face value from 91 days after issuance and before 180 days after issuance.

It is the intention of the Company to pay back the Notes before the end of this 180-day period. If the Notes are not repaid by the end of this period, any balance due is convertible—at the option of the note holders—into common stock at 60% of the lowest closing price for the prior 20 trading days.

In connection with the sale of the Notes, the Investors received a commitment fee totaling 18 million shares, and the holders of a majority of the principal amount of the Company’s notes outstanding at May 18, 2017 (the “Prior Notes”) executed, as of that date, an Omnibus Amendment that enabled the transaction by (i) extending the maturity date of these Prior Notes to May 18, 2018 and (ii) restricting the rights of all the holders of the Prior Notes, including their right to convert until certain conditions are met. In addition, the holders of these Prior Notes were relieved of their obligation to provide the final note tranche of $50,000.

Please refer to the Company’s 8-K filing for specific details.

The Company plans to use the proceeds from the Notes to complete and submit a 510K application to the FDA for the Company’s breakthrough 3D scanning device and for general working capital.

President Dane Medley stated: “Imaging3 now has the runway to achieve operating milestones, with the most important one being the submittal of the 510K for the Dominion VI imaging device. This is a big win for us as we continue to rebuild the company and fulfill the tremendous potential of our patented SmartScan technology