The Agency Group Australia Limited (ASX:AU1) announced that it has entered into a convertible note agreement for a private placement of convertible note for gross proceeds of AUD 1,000,000 on May 15, 2020. The transaction will include participation from new investor, Peters Investments Proprietary Ltd. The note will bear a fixed interest rate of 9% per annum. At the note-holders election the notes can be converted into shares at the lower of AUD 0.04 per share and a 20% discount to the 15 day volume weighted average price prior to the conversion date, up until the maturity date. Unless converted to shares, the notes will be repaid in cash on the earlier of December 31, 2020 or when all amounts owing by the company to Macquarie Bank have been repaid. The company will also issue 2,000,000 options exercisable at the lower of AUD 0.04 and a 20% discount to 15 day volume-weighted average trading price of shares prior to the date of issue of the options, on or before 2 years from date of issue. On the same date, the company has issued AUD 1,000,000 in its first tranche.