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After explaining the benefits of a SAFE note to the CEO, he now realizes that it would have been a better idea to invest his

After explaining the benefits of a SAFE note to the CEO, he now realizes that it would have been a better idea to invest his $52,000 in the form of a SAFE note instead of the promissory note which was invested. Out of curiosity, he wants you to calculate the economics of the SAFE note. Assume that the principal amount of the pre-money SAFE note is $52,000 and that it is granted a 50% discount. Assume that the next financing round would be an equity investment of $250,000 from a group of angels at a pre-money valuation of $2,000,000. Assume that Richard owns 40 shares, Erlich owns 40 shares, and Bertram owns 20 shares, for a total of 100. After converting the SAFE note, how many shares would Richard own?

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