[Vineyard Development] A community group in Montana wanted to revitalize the area and held a meeting urging residents to invest in local businesses.After the meeting,Mai and Trent,who own Valley Vineyard,decide to expand by adding a spa and first-class restaurant to the property to attract tourists.They plan to raise capital for the vineyard development by issuing securities to local investors.All of Valley Vineyard's property and assets are in Montana and their wine sales are about 85% to stores,consumers,or distributors within the state.Once the spa and restaurant are running,they would like to use their profits to open a small wine-bar in Florida.
-Are the Valley Vineyard securities exempt from registration with the SEC?

Question

Quizplus · Accepted Answer

A)Any security offered or sold to a permanent resident of the single state where the issuer of the security resides and does business is exempt as long as the issuer: does at least 80 percent of its business within the state,receives at least 80 percent of its profits within the state,has at least 80 percent of its assets within the state,plans to use at least 80 percent of the profits within the state,and has its main offices in the state.
B)Any security offered or sold to a permanent resident of the single state where the issuer of the security resides and does business is exempt as long as the issuer: does at least 80 percent of its business within the state,receives at least 80 percent of its profits within the state,has at least 80 percent of its assets within the state,plans to use at least 80 percent of the profits within the state,and has its main offices in the state.
C)Any security offered or sold to a permanent resident of the single state where the issuer of the security resides and does business is exempt as long as the issuer: does at least 80 percent of its business within the state,receives at least 80 percent of its profits within the state,has at least 80 percent of its assets within the state,plans to use at least 80 percent of the profits within the state,and has its main offices in the state.
D)Any security offered or sold to a permanent resident of the single state where the issuer of the security resides and does business is exempt as long as the issuer: does at least 80 percent of its business within the state,receives at least 80 percent of its profits within the state,has at least 80 percent of its assets within the state,plans to use at least 80 percent of the profits within the state,and has its main offices in the state.
E)Any security offered or sold to a permanent resident of the single state where the issuer of the security resides and does business is exempt as long as the issuer: does at least 80 percent of its business within the state,receives at least 80 percent of its profits within the state,has at least 80 percent of its assets within the state,plans to use at least 80 percent of the profits within the state,and has its main offices in the state.

[Vineyard Development] a Community Group in Montana Wanted to Revitalize