New York, Dec. 31 - AGU Entertainment Corp. said it issued a $3 million secured convertible term note to Mitchell Entertainment Co. in a private placement.
Mitchell also received a warrant to buy up to 2 million shares at an exercise price of $2 per share.
The term note pays interest at 10% and matures Dec. 19, 2006. Mitchell can convert the note at a price of $1.50 per share. AGU can force conversion after Dec. 16, 2005 subject to its stock trading above $5.00 for 90 trading days out of 100.
AGU is a Lauderdale Lakes, Fla., video and music company.
| Issuer: | AGU Entertainment Corp.
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| Issue: | Secured convertible term note
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| Amount: | $3 million
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| Maturity: | Dec. 19, 2006
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| Coupon: | 10%, payable monthly
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| Conversion price: | $1.50
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| Call: | AGU can force conversion from Dec. 16, 2005 onwards subject to stock trading at $5.00 or above for 90 out of 100 trading days
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| Callable at any time
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| Warrants: | For 2 million shares
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| Warrant term: | Dec. 31, 2009
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| Warrant strike price: | $2.00
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| Settlement: | Dec. 22
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