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

question 19

Multiple Choice

[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?

• A) Yes.
• B) Yes, but only if the securities are offered or only sold to permanent residents of Montana and they plan to use at least 80% of the profits within Montana.
• C) Yes, but only if the securities are offered or only sold to permanent residents of Montana.
• D) No, because they plan to open a business in Florida.
• E) No, because they want to use their profits outside Montana.

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