Ann: Cleansing Notice - Convertible Notes, page-2

As far as I can understand, the company receives $1.6m (after Everblu’s fee) from 9 month notes with a redemption value of $1.89m. On top of that they pay 8% interest + 3% upfront = $207k. So they are repaying a total of $2.1m on proceeds of $1.6m, which equals 31.25% interest over 9 months or 41.7% annualised interest ..