Speaking from experience, my advice is to use your job title to land a better paying job at a different company and don't look back. It sounds like your predecessor figured it out. Now it's time for you to do so too. Don't negotiate a new deal at your current company. Take the new offer and focus your efforts there. It can be scary to leave a role you are comfortable in, but it's the step you need to take to grow your career. A $50k/year salary increase is a lot of money. Even after taxes, that alone would cover the mortgage payments on a nice house in many parts of the country.

Saying the company is on the verge of growth is common tactic that people like your boss use. It plays into the same psychological effects that cause people to overvalue things that they own. The pain of missing out on something seems greater than the upside of selling, even if you logically know it's not true. The truth is that if your boss is cheap and entitled, he will be that way even more so when the company is more successful. Don't be surprised if he starts doing things like giving himself a generous salary increase or investing in capital equipment before profits are computed. Also 1% of profits is likely worthless if he cashes out and sells the company (notice he didn't offer you true equity). Don't let that mirage fool you into getting the paid what you are worth in the market.