EBV is considering a $$5M$ Series A investment in Newco.

The founders and employees of Newco have claims on $10$M shares of common $($including the stock pool$).$

EBV is considering PCP with participation as if $5M$ shares of common.

This structure has mandatory conversion upon a QPO, where a QPO is any offering of at least $$5$ per common share and $$15M$ of proceeds.

For the purpose of solving this problem, assume that any exit above $$5$ per share will qualify as a QPO $($i$.$e$.,$ acquisitions for at least $$5$ per common share would also be considered to be QPOs$).$

At the QPO threshold, what is the total value of this structure at the instant before conversion?

$$28\mathrm{.}3M$

$$20M$

$$25M$

$$3\mathrm{.}3M$