Serious concern on funding proposal

With $100k in annual revenue and up to $3m ( $1.7M ++) of convertible notes and remarkable a proposal to Factor Finance a possible $800k of R&D rebates from a Domacom "self assessed" ATO possible future refund ( subject to external audit)....... How can this work, IMO:

Let's say convertible notes @ 8% on a ( really) good day = $3m x .08 = $240K.

Factor Finance: Lets say drop $100 0n discount then .08 on full $900K = $72k.

Not looking good.

Hypothetically IMO, In the event of default the newly charged Convertible Note Holders and the Factor Finance company become the majority creditors ( security secured or not ) of Domacom.

There presents the possibility of a Deed of Company Arrangement by these new creditors to take control of Domacom and leave the existing shareholders with potentially not much left at all, if anything.

IMO, All shareholders should take advice once the terms and conditions of this proposal when declared , with particular attention to the Constitution of Domacom and any prospective events based on this proposal that may impact upon minority shareholders, amoungst other considerations.

If not put to a Vote by Shareholders, then it should be. The Board and Senior Management should be appraised of the potential issues that confront them in this proposed course of debt funding