Hunter is an inventor at heart. In fact, he operates a small business as a sole proprietor that sells his inventions. He has sold a few minor inventions to his family and friends, such as a sound-activated reclining chair and a wallet with a special compartment just for credit/debit card receipts. Mostly, the business has just been a hobby, but now Hunt thinks he may be on to something big. Hunt has a brilliant idea for a new product, the "Pizza Fork!" The Pizza Fork is shaped like a regular fork, except it has a retractable serrated edge on the side of one of the tines, which may be used to cut food, like pizza, before using the fork to eat. In essence, it is a combination fork and knife (a brilliant idea). However, in order to develop and produce the Pizza Fork on a nation-wide scale, he will need to raise a significant amount of capital. In fact, Hunt estimates that he will need between $4-$5 million to get the Pizza Fork into the market (including infomercial). No bank will loan Hunt the money he needs, so he incorporates his business in Delaware as Hunt Industries, Inc. (HI). Hunter plans to sell shares of his company's stock to investors to raise the amount of capital necessary. He knows between 30 and 40 very wealthy investors that he plans to solicit in order to sell shares in HI. Hunt's main concerns with the stock issue are that he not be required to make costly and extensive disclosures and that the purchasers are not restricted in their ability to re-sell the shares right away.

How would you advise Hunter to go about his stock offering? In your answer, discuss the potential benefits and drawbacks of conducting a public offering (IPO) vs. an exempt offering. Conclude by making a recommendation as to whether he should seek an exemption and, if so, which option he should pursue and why.