The American Energy Group (AEGG) announced that it has entered into a loan transaction with an institutional investor for the borrowing of $350,000.
According to a release, the funds will be used solely for the required cost advance required by the International Chamber of Commerce (ICC) tribunal in connection with the scheduled February 17, arbitration final hearing in which the Company's claims against Hycarbex American Energy, Inc., Hycarbex Asia Pte. and Hydro Tur (Energy) will be adjudicated. The terms of the loan are an eighteen month term, an interest rate of 5.0 percent per annum and debt reduction payments prior to maturity only out of 25 percent of any proceeds of hydrocarbon production received by the Company, any ICC refunds, or any lump sum settlement payments from any participant. The loan is secured by a first lien on the Company's non-producing Texas oil and gas interests. The loan also includes the issuance to the lender of 2.33 million warrants to purchase the Company's common stock at $0.15 per share for twenty four months.
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