Merger and Acquisitions

X to invest USD 2M for a 30% stake (new shares would be issued instead of acquiring existing shares)
The funds raised would be used to acquire adjacent land to build a building extension
After 2 years, a 21% stake would be sold to X (bringing our ownership to 51%)
On top of the payment for the 21% share, the original 2M will be adjusted based on the 21% valuation (almost like a quasi-earn out). Can anyone tell me the effect of this on my financial model. Is this a good deal or bad for investor?

 

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