[frossie]

I don't pretend to understand this stuff, but the summary seems to be:

When you raise money by selling stock, you give away power in your company in exchange. This is a scheme to retain power by making the stock that you keep more powerful than the one you sell to other people.

Pros: you retain more control. Cons: You might not find people to buy your stock under those terms.

I'd be surprised if investors like this.