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A convertible note has a face value of $ 4 0 0 , 0 0 0 and a pre - money valuation cap of $

A convertible note has a face value of $400,000 and a pre-money valuation cap of $5,000,000 and a 20% discount. Series A investors invest $3,000,000 and are issued 6,000,000 shares. The entrepreneur has 4,000,000 shares outstanding. Questions 1. What is the series A price? What is the cap price? 2. How many shares will the note investor be issued at conversion?

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