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Develop a capitalization table

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Reference no: EM133070807

Part 1

A company has 3,000,000 common shares outstanding and then issues 1,000,000 shares of Preferred stock in a Series A offering at a purchase price of $1.00 per share (resulting in $1,000,000 in financing). The Series A stock is initially convertible into common stock at a 1:1 ratio for a conversion price of $1.00. Develop a capitalization table following this Series A round of financing.

Part 2

In a subsequent financing round, the company conducts a Series B offering for an additional 2,000,000 new shares of stock at $0.60 per share (resulting in an additional $1,200,000 of financing). Develop a capitalization table following the Series B financing under two possible scenarios:

  1. Series A shares have full ratchet anti-dilution protection
  2. Series A shares have weighted average anti-dilution protection

Reference no: EM133070807

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