The firm, which specialises in medical imaging services, said that the notes, which will pay 6% interest until 2024, will convert into around 13.4mln shares at a price of 2p each, a 57% premium to its last close price of 1.3p.
READ: IQ-AI makes first Imaging Biometrics software sale to South Korea, updates on StoneChecker software progress
Trevor Brown, the company’s chief executive, subscribed for £250,000 of the loan notes while Imaging Biometrics, IQ-AI’s subsidiary, subscribed for the other £18,500.
IQ-AI said the funds raised allowed it to “fully execute” its current business plan following the first sale of Imaging Biometrics’ software in South Korea.
The group is also in the process of getting US approval for its StoneChecker kidney stone software.
Shares were up 13.7% at 1.45p.