Wavefront imaging company, Iatia (ASX:IAT) has successfully secured funding to progress product development and marketing initiatives. Funding, totalling $500,000, has come from a substantial shareholder, directors and management and represents significant support for the company.

The Deputy Chairman, Vincent Thiang has made an unsecured interest free loan to the company of $100,000, which will be converted to equity, subject to shareholder approval. The issue price for the conversion will be 1 cent per share.

The CEO, Charles Laycock has also loaned the company $200,000 in the form of a secured convertible note. There is no interest charge on the loan and the loan is for three years and can be converted at the same price as the equity issued to Vincent Thiang.

Another major shareholder Moneylink Sdn Bhd has also contributed $200,000 on the same basis as the CEO, but ranking behind that note in terms of security. Half the amount will be received in May with the other half subject to certain performance measurements and payable by September 2009. Considering the costs incurred by major companies in sourcing loan funds, an interest free loan is a substantial advantage to the company. This support ensures the current development efforts can be completed.

The company anticipates giving all shareholders the opportunity to invest at the same price through a share purchase plan. The company has not sought funds from investors for over two years and has exercised tight costs control to ensure revenues were well utilised. In the current financial environment Iatia considered it appropriate to secure extra funding and to give shareholders the opportunity to increase their interests at the lower share price. The company will release details of the share purchase plan shortly.

This funding will help Iatia to progress product development and expand its marketing effort in the US and Europe.