One million (1,000,000) shares of stock were issued to the founders of a start-up company on January 1, 2019. On July 1, 2019, the firm raised $500,000 from outside investors and issued 500,000 of convertible preferred stock with a conversion price of $1 per share (ROUND 1). At the time capital was raided, the investors insisted on a FIVE YEAR vesting schedule for the founders initial equity interest, with vesting on a monthly basis (1/60 of the founders interest vests each month); and weighted average anti-dilution protection in the case of a subsequent DOWN ROUND. Operations during the first eighteen months have been sluggish, and the company needs additional capital to continue operations and grow the firms sales and value. A second set of outside investors is willing to provide $1,300,000 in return for 2,000,000 shares of convertible preferred stock (ROUND 2). For purposes of this problem, today is July 1, 2020.

Given the down round, what is the NEW conversion price for Round 1 shares?