Jones Knight is a small copper mining company with operations in Arizona,South America,and Montana.It is listed on NASDAQ and is preparing to do a public offering for $50,000,000.Which of the following exemptions could Jones Knight use in order to avoid registration?

Question

Jones Knight is a small copper mining company with operations in Arizona,South America,and Montana.It is listed on NASDAQ and is preparing to do a public offering for $50,000,000.Which of the following exemptions could Jones Knight use in order to avoid registration?​

Quizplus · Accepted Answer

Jones Knight can use Regulation D - Section 506 exemption to avoid registration. This exemption allows the company to sell securities to accredited investors and a limited number of unaccredited investors without registering with the SEC. As a publicly-traded company, they would not be able to use other Reg D exemptions, but Section 506 is still available. The intrastate exemption would not be applicable since Jones Knight has operations in multiple states and South America. Section 11 registration is not an exemption but rather a requirement for companies offering securities to the public.

Jones Knight Is a Small Copper Mining Company with Operations