IMO, agreed value is subjective and BLTA can set the price they want to sell the shares. Beauty of the market, it all comes down to what two parties agree on. Plus remember that preferred shares always get paid first, they have priority over common shares in getting paid any dividends or recovering their value in shares so they are getting that security.

Again, I am seeing no reason why the common share structure needs to change if they get an investor. The preferred shares valued at $500,000, based on finding no information in financial statements, are not tied to the common share structure so it does not make any sense to do anything with that if they get an investor for the preferred shares.

Keep in mind as well this is a start-up, they can offer future earnings power in the form of percentage of profits, substantial ownership of the company, high dividend yield once revenues start, etc. Its all up to the agreement between BLTA and investors. I think that CP Capital Securities will help immensely in these negotiations based on caliber of clients they work with.

IMO