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SUBSEQUENT EVENTS
12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
Note 11. SUBSEQUENT EVENTS

Management has evaluated subsequent events through the date these financial statement were available to be issued and there were no material subsequent events to disclose, except as described below.

 

On January 9, 2017, Imagion, MHTX and (the “Interim Investor #3”) entered into a Note Purchase Agreement pursuant to which the Interim Investor #3 invested $65,000 in consideration of Promissory Notes issued by Imagion (the “Interim Imagion Note”) payable on the one year anniversary. The Interim Investor or other investors may invest up to a total of $500,000 under the Note Purchase Agreement. The Interim Imagion Note accrues interest at the rate of 8% per annum, provided, however, in the event of a default, interest shall accrue at 10% per annum. The Interim Imagion Note is subordinate to the Senior Notes. The Company, Imagion and the Interim Investor #3 also entered an Irrevocable Proxy as well as a Voting Agreement whereby the Company granted the Interim Investors a right to vote its Imagion shares to carry out the spinout plan and the parties agreed to vote their Imagion shares to provide for one director of Imagion to be appointed by the Company and four directors to be appointed by the Interim Investors. During January 2017, the amounts loaned were $65,000.

 

During the two months ended February 28, 2017, Imagion raised a total of approximately $2.7 million from investors for 62 million shares of common stock. 

 

On February 2, 2017, Imagion repaid a total of $2 million of debt to three lenders and the remaining balance of $500,000 was renegotiated and replaced with three new convertible promissory notes. The notes bear interest at 8% per annum with default interest at 10% per annum. The notes are due in February 2019 with a balloon payment of principal and accrued interest. In addition, at the close of the initial public offering (“IPO”) the note will automatically convert into shares of common stock at the conversion price equal to the price per share paid by investors in the IPO and any accrued interest will be paid in cash.