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Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 9858
Experience:  30 years of corporate, litigation and international law
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If a company valued by BOD at $1M that has authorized 1

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If a company valued by BOD at $1M that has authorized 1 million shares and founders have 300,000 issued shares, how many shares must be issued to someone investing $400,000 to provide him with 20% ownership?
Submitted: 1 year ago.
Category: Business Law
Expert:  Richard - Bizlaw replied 1 year ago.

Hello, my name is ***** ***** I will try to help you. Please remember I just report or interpret the law, so the outcome may not be what you hoped for.

Based on your post the new investor would not get the full value of his investment. For the new investor to get 20%, the totlal number of shares outstanding would be 375,000 and the new investor would get 75,000 shares. This would be about 9.6% less than the value added.

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Expert:  Richard - Bizlaw replied 1 year ago.

FYI to get the full value of the investment, the new investor would get 29.57% or a total of 119,992 shares.

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