Hi Freckie and all. Again super grateful for all the feedback. Just to update everyone, I did pull out of the deal a few days ago. citing only the inequality of the property side of the investment. I did leave the door open if they could restructure the deal to my advantage. As hoped they say they have a better proposal for me, which they intend to produce to me shortly. By the  way they say it's going to be so attractive I'm going to find it hard to refuse!  Not sure if they're doing this because they realize I'm not as naive as they thought, or because they were the naive ones, in the first place.

I haven't mentioned my growing dissatisfaction with in the business side of the deal yet,

They did give me a business plan, some time ago, which outlined the basic equity share. But did not comprehensively cover  the value of the company and how they valued it. Not sure if you're saying that should have been in the business plan or will most likely be in the investment proposal?

I feel I'll be in a better bargaining position thanks to your recent help, but also because I've already made inroads by making them reexamine one half of the investment.

But I feel there are many bridges to cross. My worry is that I'll educate them with my recently learnt tough love, and they'll drop me like some kind of a reverse Dragons den stone. My only cards seem to be your help, help from other more experienced friends I have, my lawyers eventually advice, and my own head to heart instinct, and that they're willing to wake up or at least compromise, when I tell them they're companies valuation is a little optimistic!

I'm thinking the basic rules of negotiating go, I want 40-45$%, they say 25%, I say 35% etc etc.

Wouldn't you negotiate at all?

Great advice. Thanks a lot. Two questions.

!. Regarding what they're bringing to the table. They have a letter of Intent from a fairly large chain of pubs to sell our beer.

Obviously that's just a piece of paper right now. The reason I think the business will be a success is that one of the guys

is a roaring success story over the last 5 years. He's almost single handedly revitalized a neighborhood

here in Vancouver and is always in the news. The same people that have the distribution network have asked him to run a new pub near his restaurants that would specialize in craft beers. Again nothings happened yet, but from his angle he will say he's bringing a lot to the table.

Would this impress you enough into taking maybe a 30% stake?

2. Would you talk to them direct or do everything through your lawyer?

Regards

Ian

Again thank you. Guess my final question is how is there a way to get a better deal. Or are they beyond hope?