Medical Imaging Corp. (OTCPK:MEDD) announced a private placement of 25% convertible note with new investor Grenville Strategic Royalty Corp. for gross proceeds of $500,000 on February 25, 2016.

The notes will bear interest at a rate of 25% per annum, payable monthly, and are due on August 31, 2017. The investor 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. The company paid $15,000 was retained for the hiring of a financial advisor and $8,000 for legal fees.