Question
Mark is a San Francisco businessman who owns an older motel on the shore of Lake Tahoe in Nevada. The motel next door to his,
Mark is a San Francisco businessman who owns an older motel on the shore of Lake Tahoe in Nevada. The motel next door to his, also an older motel, recently came onto the market for sale. Both of these motels have a relatively large amount of land. The restaurant and lounge areas of each contain a few slot machines, and Mark's motel has a poker table, but there is currently no other gambling at either location. Mark is considering buying the motel next door and using the combined premises to open a luxury resort and casino. He has not yet decided whether he will remodel the current buildings, or demolish them and start from scratch. Mark plans to invest a couple of million dollars of his own but will need to raise around $50,000,000 to get this venture going. Word Count 250.
Discuss Mark's options in raising this money.
What options would subject Mark to the Securities Act of 1933?
Could Mark qualify for any exemptions under the securities laws?
If so, which exemptions might he qualify for?
If Mark is subject to the Securities Act of 1933, with what general requirements must he comply?
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