I read that as the share issuances to new investors would be up to 50M shares (2.4%) issued to individuals associated with the LLC as part of the merger. I view it as compensation to current management/investors involved, completely separate from the $15M capital being raised.
That gives them a personal stake in the public corporation of GVSI, as in liquidity, which they can't sell until 2026. Since they retain 65% ownership of the LLC, the shares are minor compared to the $15M in financing.
Sharp doesn't need the 300k series B preferred shares because ownership can transfer with the 1 series A preferred share. So that is at least beneficial, as it closes the loophole where he could convert those 300k shares to billions of common shares.
But the pressing question is how can an empty shell magically manifest $15M in capital? Typically this would either involve heavy dilution or I guess new investors could contribute $15M and receive preferred shares, but why not skip the middleman? The only value GVSI has is that it is a public corporation.