# EDGAR Filing Document

**Accession Number:** 0001968516
**File Stem:** 0001746059-23-000064
**Filing Date:** 2023-3
**Character Count:** 136091
**Document Hash:** f2680a8874eac35e7bf62253b4b802f7
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001746059-23-000064.hdr.sgml**: 20230310

**ACCESSION NUMBER**: 0001746059-23-000064

**CONFORMED SUBMISSION TYPE**: C

**PUBLIC DOCUMENT COUNT**: 8

**FILED AS OF DATE**: 20230310

**DATE AS OF CHANGE**: 20230310

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Cactus Blossom Cantina, LLC
- **CENTRAL INDEX KEY:** 0001968516
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** VT

**FILING VALUES:**
- **FORM TYPE:** C
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-31970
- **FILM NUMBER:** 23723556

**BUSINESS ADDRESS:**
- **STREET 1:** 139 MAIN ST
- **CITY:** BENNINGTON
- **STATE:** VT
- **ZIP:** 05201
- **BUSINESS PHONE:** (480) 338-0669

**MAIL ADDRESS:**
- **STREET 1:** 139 MAIN ST
- **CITY:** BENNINGTON
- **STATE:** VT
- **ZIP:** 05201

### Attached PDF Documents

**Attachment 1:** `cactusblossom_offmo.pdf`

![img-0.jpeg](img-0.jpeg)

## OFFERING MEMORANDUM

facilitated by

![img-1.jpeg](img-1.jpeg)

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# Cactus Blossom Cantina, LLC

## FORM C

### OFFERING MEMORANDUM

#### Purpose of This Form

A company that wants to raise money using Regulation Crowdfunding must give certain information to prospective investors, so investors will have a basis for making an informed decision. The Securities and Exchange Commission, or SEC, has issued regulations at 17 CFR §227.201 listing the information companies must provide. This form - Form C - is the form used to provide that information.

Each heading below corresponds to a section of the SEC's regulations under 17 CFR §227.201.

#### (A) The Company

| Name of Company | Cactus Blossom Cantina, LLC |
| --- | --- |
| State of Organization | VT |
| Date of Formation | 09/13/2022 |
| Entity Type | Limited Liability Company |
| Street Address | 139 Main St, Bennington VT, 05201 |
| Website Address | cactusblossomcantina.com |

#### (B) Directors and Officers of the Company

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| Key Person | Christina Brogan |
| --- | --- |
| Position with the Company | Title First Year Executive Chef/Owner 2023 |
| Other business experience (last three years) | List any other titles and dates of positions held (with this business or other employers) during the past three years with an indication of job responsibilities. For example: • Event Chef @ Fabulous Food Fine Catering (2015-2021) - Large scale fine catering for galas and elite events - prepare, finish and serve multiple course meals to groups of 40 to 600. • Personal Chef @ Artisan Personal Chefs (2016-2022) - Custom fine catering for small scale celebrations and events - plan, shop, prep, cook and serve multiple course dinner to parties between the size of 6 and 24. • Executive Chef/Owner @ Cactus Blossom (2022-now) - Primary initial responsibilities include: menu creation, optimizing work flow and minimizing waste. Post-open tasks include: Food preparation and quality control, Service back-up and over sight. |

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| Key Person | Tsui-Jen Cunanan |
| --- | --- |
| Position with the Company | Operations Administrator 2022 |
| Title First Year |  |
| Other business experience (last three years) | List any other titles and dates of positions held (with this business or other employers) during the past three years with an indication of job responsibilities. For example: Operations Specialist & Food Prep - Leafside (11/2021-4/2022) - Leafside is a vegan/plant-based meals start-up that focuses on healthy, organic, and sustainable ready-to-eat meals. Focus on inventory/cost control though careful use of weights and measures Follow detailed recipe cards in a large scale production kitchen Operate a clean and organized food prep area per OSHA standards Sous Chef - The Vegan Taste (05/2020-12/2021) - Weekly meal service that offers a rotating menu of high-end, vegan, international dishes. Creating new menus each week, either solo or in coordination with Chef Jason Wyrick Responsible for overseeing food rotation, portion control, and menu adherence Operate a clean and organized food prep area per OSHA standards |

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| Key Person | John Brogan |
| --- | --- |
| Position with the Company | Title First Year Operations Manager 2022 |
| Other business experience (last three years) | Foundation Drafting & Design, LLC (2017- now) - Owner and principle drafter specializing in residential redesign, additions, & renovations. John will visit a site to conduct a feasibility survey and meet with customers to discuss the design process. Plans and renderings are then generated to assure customer satisfaction before the documents are submitted to the local jurisdiction for permitting. Owner/Operations Manager @ Cactus Blossom Cantina, LLC (2022- now) - John will be responsible for overseeing the wellbeing of the building & equipment, redesigning and remodeling the interior spaces, acquiring permitting & licensing when applicable, scheduling maintenance and facilities management, and working with the Operations Administrator to order inventory, equipment, and supplies as required. |

# (C) Each Person Who Owns 20% or More of the Voting Power

| Name of Holder | % of Voting Power (Prior to Offering) |
| --- | --- |
| Christina Brogan | 55% |
| John Brogan | 27% |

# (D) The Company's Business and Business Plan

# Intended Use of Funds

In order to move forward with our venture, we need to acquire funding for the remaining down

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payment balance, closing costs and working capitol.

- The purchase of a physical location with attached residential space allows our team the stability needed to keep revenue flowing during unstable times
- This brick and mortar business and home can serve as the head quarters for: On or off site catering, personal chef services, market production, event hosting, classes and demonstrations, or rental space for small catering businesses or food truck operators

# Business Model

Cactus Blossom's primary source of revenue will be generated from dine-in sales, followed by pick-up orders and catering.

- Taking advantage of our "one-man" kitchen, our team has designed a high-quality, quick-service menu
- Unlike most of the local business and restaurants, our doors will be open 7 days a week and will stay open as late as midnight
- Utilizing the full scope of the kitchen and bar for morning food preparation allows for consistent, speedy service during evening hours

# Our Story

Cactus Blossom Cantina is the dream of two Arizona raised chefs. Seeking respite from the growing instability along our western coasts, we put everything on the line to move our families out to the beautiful Green Mountain State.

- Post-pandemic work culture has left us dissatisfied with corporate employment
- Having found an amazing local realtor and a promising location, we started the process of selling our home in Arizona and buying our new business in VT
- We quickly learned that the barriers to entry are even more than we predicted
- Unable to bridge the cost between the asking price and appraisal we had to walk from our first location and rent a place to live in the mean time
- After finding a new location and restructuring our business plan, we are back on track to close on our new location
- The very drawn out process of re-homing our family and navigating the multiple levels of bureaucracy has drained our initial recourses and left us short of the needed starting capital

# Traction & Validation

We have spent the last six months, on the ground in Vermont, surveying the local market place and connecting with the local business owners and restaurant goers. The slow pace of small town business openings has been out paced by post-pandemic restaurant closures and the market is ripe for a new wave of more sustainable food establishments.

- A notoriously pro-small business state, residents and tourists alike prefer spending money at local restaurants
- With a strong sentiment for the old Rattle Snake Café, locals are hungry for Latin-American flavors
- Having the support and assistance from a number of local entities including the Vermont Economic Development Authority, the Vermont Small Business Development Center, the Bank of Bennington and several of the local small business owners, has allowed us to more thoroughly develop a business plan that is viable for the community

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# The Space

The former Donavan's sports bar was a profitable and beloved spot for many locals. Offering 40+ seats, 12 beer taps and a compact "one-man" kitchen, this space offers the infrastructure to support a quick service menu and a robust bar.

- Meticulously maintained by its former owner, the equipment and facilities are walk-in ready
- Second story living space will allow owners maximum involvement while maintaining family life balance
- Back patio and unfinished front 1/3 of the upper level offer opportunities for expanded dining area

# Location

Located on the West side of Main St., just a short drive from the heart of downtown Bennington Vermont. Found in the southwestern corner of the Green Mountain State, Bennington county shares a boarder with New York and Massachusetts.

- Vermont is predicted to be one of the up-coming hotspot for climate refugees
- Part of the main street alliance, we will have a unique opportunity to cross-promote with other Main St. business
- Bennington is the hub for the county in terms of employment, shopping and medical needs

# Target Market

Bennington VT hosts a population of nearly 16,000. Approximately 30% are between the age of 20 and 49 and represent the bulk of our target market. Younger generation diners and an increasingly diverse workforce are looking for new, exciting dining experiences.

- The health care, education, social, and governmental services sector of the economy represent over 5,000 jobs in the local area
- The local community relies heavily on Facebook to advertise and communicate, as such, an involved social media presence is a must for attracting new and return customers
- Word of mouth reputation is the back-bone of small town advertising. The novelty will bring in our first wave of customers, but it is up to us to wow them and keep them coming back

# Our Mission

To curate a seasonal fusion of Southwestern American cuisine with quality New England ingredients & to create a new hub for under-served members of the community.

- All of our dishes will be scratch-made by experienced Arizona chefs
- The Cantina bar will feature a selection of some of the best local beer, wine, cider and mead
- Our operating hours and menu are designed to grow and improve with community input

# The Team

Christina Brogan, Executive Chef

Christina Brogan - Executive Chef

Chef Christina was educated in classic, French fine dining

techniques at the acclaimed Arizona Culinary Institute. After

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graduating, she trained under celebrity Chef Beau MacMillan at his restaurant Elements. She later moved on to become the Executive Chef at Pomegranate Cafe where she had the privilege of working closely with small farms to create an extensive rotation of seasonal vegan recipes. The later half of her career has been focused on catering both large and small scale fine dining events including galas, weddings, grand openings, business meetings, bachelorette and birthday parties.

Christina's role at Cactus Blossom will include:

Seasonal menu development, streamlining workflow and minimizing waste, food preparation and quality control, service back up and oversight.

TJ Cunanan, Operations Administrator

TJ Cunanan - Operations Administrator

Having cooked at and managed numerous vegan/vegetarian kitchens in the Phoenix area over many years, Chef TJ has an intricate knowledge of efficient kitchen flow and technical skill. Drawing on a diverse background and worldly experience, Chef TJ is able to conjure amazing dishes and fantastic flavors to impress even the staunchest critics.

TJ's role at Cactus Blossom will include:

☐ Manage the kitchen and bar during service hours, hire and train new staff, update website, manage social media and customer outreach, assist with menu prep and development

John Brogan, Operations Manager

John Brogan - Operations Manager

Owner of Foundation Drafting & Design since 2017, John brings an array of skills essential to the preparation and maintenance of the building and business.

John's role at Cactus Blossom will include:

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Assessing current property condition for vulnerabilities and future opportunities, oversee facilities maintenance, accounts and finances, plan/permit expansions and events, manage marketing and merchandise.

For more information, please refer to the Page View included with this filing.

# **(E) Number of Employees**

The Company currently has 3 employees. The Company may hire or discharge employees in the future to meet its objectives.

# **(F) Risks of Investing**

A crowdfunding investment involves risk. **YOU SHOULD NOT INVEST ANY FUNDS IN THIS OFFERING UNLESS YOU CAN AFFORD TO LOSE YOUR ENTIRE INVESTMENT.** In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. Please review the Educational Materials for risks that are common to many of the companies on the MainVest platform.

THESE SECURITIES ARE OFFERED UNDER AN EXEMPTION FROM REGISTRATION UNDER FEDERAL LAW. THE U.S. SECURITIES AND EXCHANGE COMMISSION (THE “SEC”) HAS NOT MADE AN INDEPENDENT DETERMINATION THAT THESE SECURITIES ARE EXEMPT FROM REGISTRATION. THE SEC HAS NOT PASSED UPON THE MERITS OF THE SECURITIES OR THE TERMS OF THE OFFERING, AND HAS NOT PASSED UPON THE ACCURACY OR COMPLETENESS OF THE OFFERING DOCUMENTS OR LITERATURE.

THESE SECURITIES HAVE NOT BEEN RECOMMENDED OR APPROVED BY ANY FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY. FURTHERMORE, THESE AUTHORITIES HAVE NOT PASSED UPON THE ACCURACY OR ADEQUACY OF THIS DOCUMENT.

Please refer to Appendix A for additional risks to consider when investing in this offering.

# **(G) Target Offering Amount and Offering Deadline**

| Target Offering Amount | $45,000 |
| --- | --- |
| Offering Deadline | May 12, 2023 |

If the sum of the investment commitments does not equal or exceed the Target Offering Amount as of the Offering Deadline, no securities will be sold in the offering, investment commitments will be canceled, and all committed funds will be returned. The Company may extend the Offering Deadline and shall treat such an extension as a material change to the original offer and provide Investors with notice and opportunity to reconfirm their investment in accordance with Section (K) of this Memorandum.

# **(H) Commitments that Exceed the Target Offering Amount**

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| Will the Company accept commitments that exceed the Target Offering Amount? | Yes |
| --- | --- |
| What is the maximum you will accept in this Offering? | $124,000 |
| If Yes, how will the Company deal with the oversubscriptions? | We will accept subscriptions on a first-come, first-served basis. |

#### (I) How the Company Intends to Use the Money Raised in the Offering

The Company is reasonably sure it will use the money raised in the offering as follows:

| Use | Amount (Minimum) | Amount (Maximum) |
| --- | --- | --- |
| Working Capital | $14,000 | $31,744 |
| Closing Costs | $16,952 | $50,856 |
| Remaining down payment | $7,000 | $21,000 |
| Buffer | $4,010 | $12,030 |
| Mainvest Compensation | $3,037.5 | $8,370 |
| TOTAL | $44,999.5 | $124,000 |

The amounts listed estimates and are not intended to be exact description of the Company's expenditures. Exact allocation and use of funds may vary based upon legitimate business expenditures and economic factors.

#### (J) The Investment Process

##### To Invest

- Review this Form C and the Campaign Page
- If you decide to invest, enter an amount and press the Invest button
- Follow the instructions

##### TO CANCEL YOUR INVESTMENT

Send an email to info@mainvest.com no later than 48 hours before the Offering Deadline or go to the dashboard for your user account to cancel manually. In your email, include your name and the name of the Company.

##### Other Information on the Investment Process

- Investors may cancel an investment commitment until 48 hours prior to the Offering Deadline.
- MainVest will notify investors when and if the Target Offering Amount has been raised.
- If the Company reaches the Target Offering Amount before the Offering Deadline, it may close the offering early if it provides notice about the new Offering Deadline at least five

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business days before such new Offering Deadline, absent a material change that would require an extension of the offering and reconfirmation of the investment commitment.

- If an investor does not cancel an investment commitment before the 48-hour period before the Offering Deadline, the funds will be released to the Company upon closing of the offering and the investor will receive securities in exchange for his or her investment.

For additional information about the investment and cancellation process, see the Educational Materials.

### (K) Material Changes

In the event the issuer undergoes a material change, the Investor will be notified of such change. The investor will have five (5) business days from the receipt of such notice to reconfirm their investment. IF AN INVESTOR DOES NOT RECONFIRM HIS OR HER INVESTMENT COMMITMENT WITHIN FIVE (5) DAYS OF THE NOTICE OF MATERIAL CHANGE BEING SENT, THE INVESTOR'S INVESTMENT COMMITMENT WILL BE CANCELLED, THE COMMITTED FUNDS WILL BE RETURNED, AND THE INVESTOR WILL NOT BE ISSUED ANY OF THE SECURITIES REFERENCED IN THIS OFFERING.

#### Explanation

A 'material change' means a change that an average, careful investor would want to know about before making an investment decision. If a material change occurs after you make an investment commitment but before the Offering closes, then the Company will notify you and ask whether you want to invest anyway. If you do not affirmatively choose to invest, then your commitment will be cancelled, your funds will be returned to you, and you will not receive any securities.

### (L) Price of the Securities

The Company is offering 'securities' in the form of revenue sharing notes, which we refer to as 'Notes.' The Notes are being offered at their face amount. For example, you will pay $1,000 for a Note with a face amount of $1,000.

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## (M) Terms of the Securities

### Overview

The Company is offering “securities” in the form of revenue sharing notes, which we refer to as the “Notes.” The Terms of the Notes are set forth in the Revenue Share Agreement accompanying this Form C in Appendix A. Copies of the Note and Revenue Sharing Agreement are attached to this Form C.

### Summary of Terms

| Revenue Percentage 1 | 1.5 - 4.1% 2 |
| --- | --- |
| Payment Deadline | 2031-03-31 |
| Maximum Payment Multiple 3 - Early Investors - All Other Investors | 1.6 x 1.5 x |
| Sharing Start Date | The first day after disbursement that the company has revenues greater than one ($1) dollar |
| First Payment Date | The last day of the calendar quarter ending not less than 90 days after the Sharing Start Date |
| Seniority | Subordinated |
| Securitization | Unsecured |
| Accrual Rate | 3.65% |

$^{1}$ as defined in the note agreement included in Appendix A

$^{2}$ The rate of revenue sharing is calculated on a linear scale with a minimum rate of 1.5% and a maximum rate of 4.1% and is rounded to the nearest 1/10th percent. The final rate is based on the amount raised and is calculated after the offering has successfully closed. As the amount raised in the offering increases, the rate of revenue sharing increases. For example, a hypothetical offering could result in the following revenue sharing percentages, depending on the amount raised:

| Amount Raised | Revenue Sharing Percentage |
| --- | --- |
| $45,000 | 1.5% |
| $64,750 | 2.1% |
| $84,500 | 2.8% |
| $104,250 | 3.4% |
| $124,000 | 4.1% |

$^{3}$ To reward early participation, the investors who contribute the first $45,000.0 raised in the offering will receive a 1.6x cap. Investors who contribute after $45,000.0 has been raised in the offering will receive a 1.5x cap.

### Your Right to Payments under the Note

Your right to payments under the Note is set forth in the Note, together with a separate document

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called the Revenue Sharing Agreement. Copies of the Note and Revenue Sharing Agreement are attached to this Form C. Additionally, general terms are outlined below and in the Company's offering page.

# Obligation to Contribute Capital

Once you pay for your Note, you will have no obligation to contribute more money to the Company, and you will not be personally obligated for any debts of the Company. However, under some circumstances you could be required by law to return some or all of a distribution you receive from the Company.

# No Right to Transfer

You should plan to hold the Notes until maturity. The Notes will be illiquid (meaning you might not be able to sell them) for at least four reasons:

- The Revenue Sharing Agreement prohibits the sale or other transfer of Notes without the Company's consent.
- If you want to sell your Note the Company will have the first right of refusal to buy it, which could make it harder to find a buyer.
- Even if a sale were permitted, there is no ready market for Notes, as there would be for a publicly-traded stock.
- By law, for a period of one year you won't be allowed to transfer the Investor Shares except (i) to the Company itself, (ii) to an "accredited" investor, (iii) to a family or trust, or (iii) in a public offering of the Company's shares.

# Security

The Notes are not secured by any assets of the Company or any assets of persons associated with the Company.

# Modification of Terms of Notes

The terms of the Notes and the Revenue Sharing Agreement may be modified or amended with the consent of Investors holding 50% of the Notes, measured by the total amount outstanding under each Note.

# Other Classes of Securities

| Name of Security | Limited Liability Company Interests |
| --- | --- |
| Number of Shares Outstanding | N/A |
| Describe Voting Rights of These Securities, Including Any Limitations on Voting Rights | N/A |
| How these securities differ from the revenue sharing notes being offered to investors | Limited Liability Company Interests are an equity interest, whereas Revenue Sharing Notes are a debt obligation of the Company. |

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## Dilution of Rights

The Company has the right to create additional classes of securities, both equity securities and debt securities (e.g., other classes of promissory notes). Some of these additional classes of securities could have rights that are superior to those of the Notes. For example, the Company could issue promissory notes that are secured by specific property of the Company.

## The People Who Control the Company

Each of these people owns 20% or more of the total voting power of the Company:

| Name of Holder | % of Voting Power (Prior to Offering) |
| --- | --- |
| Christina Brogan | 55% |
| John Brogan | 27% |

## How the Exercise of Voting Rights Could Affect You

You will receive payments with respect to your Note only if the Company makes enough money to pay you, or, if the Company does not make enough money to pay you, if there is enough value in the collateral the Company pledged as security for the Notes.

The people with voting rights control the Company and make all the decisions about running its business. If they make good business decisions, it is more likely you will be paid. If they make poor business decisions, it is less likely you will be paid. For example, if they hire too many people and/or try to expand too quickly, the business could be harmed. The people with voting rights could also decide to file for bankruptcy protection, making it more difficult for you to be paid.

## How the Notes are Being Valued

The Notes are being valued at their face value. We don't anticipate that we'll ever need to place a value on the Notes in the future.

## (N) The Funding Portal

The Company is offering its securities through MainVest, Inc., which is a 'Funding Portal' licensed by the Securities and Exchange Commission and FINRA. MainVest Inc.'s Central Index Key (CIK) number is 0001746059, their SEC File number is 007-00162, and their Central Registration Depository (CRD) number is 298384.

## (O) Compensation of the Funding Portal

Upon successful funding of the Offering, the Funding Portal will receive as the 'Revenue Securement Fee'; 4.5% of the amount of the Offering raised by In-Network Users of the Platform plus 9.0% of the amount of the Offering raised by all other investors. 'In-Network Users' means a user of Mainvest.com who who have utilized the Company's specified in-network link on the Site.

## (P) Indebtedness of the Company

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The Company has no indebtedness outside of the debt the Company is expecting to raise through regulation crowdfunding on MainVest.

# **(Q) Other Offerings of Securities within the Last Three Years**

The Company has not made any offerings with other third-party regulation crowdfunding companies in the past three years.

# **(R) Transactions Between the Company and 'Insiders'**

The Company has not entered into any business transactions, including stock Purchases, salaries, property rentals, consulting arrangements, guaranties, or other agreements with any individual identified in Section 227.201 (r)(1)-(4) of Regulation Crowdfunding during the 12 months preceding this Offering.

# **(S) The Company's Financial Condition**

Due to dwindling finances, our project will need the coordination of several entities to move forward:

Bank of Bennington - Primary loan holder working in conjunction with the Vermont Economic Development Authority who will match our down payment of 10% for a total of $62,000

Total real-estate cost post appraisal is $310,000

Town of Bennington will cover a loan of $40,000 to purchase the equipment being sold with the building

Mainvest investors to help cover the additional $40,000 needed to cover down payment, closing costs and working capitol

$10,000 + has been invested in the systems and technologies needed to operate our restaurant

A $10,000 deposit is being held by the B.O.B. and an additional $14,000 has been set aside for additional down payment.

# **(T) The Company's Financial Statements**

Please see Appendix B for historical financial statements.

# **Pro Forma Income Statement**

In order to illustrate its future earning potential, the Company has provided a summary of its - year financial forecast. The forecast has been developed by the Company using reasonable best efforts based on their understanding of the industry and market they wish to enter. Please refer to Section (F) of this Offering Memorandum for a list of the risks associated with an investment in the Company and utilizing any pro forma provided by the Company for making investment decisions.

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|  | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| --- | --- | --- | --- | --- | --- |
| Gross Sales | $428,550 | $509,116 | $580,433 | $609,455 | $627,738 |
| Cost of Goods Sold | $133,279 | $158,335 | $180,514 | $189,539 | $195,224 |
| Gross Profit | $295,271 | $350,781 | $399,919 | $419,916 | $432,514 |
| EXPENSES |  |  |  |  |  |
| Opex + Debt | $237,100 | $246,790 | $260,508 | $255,329 | $261,712 |
| Operating Profit | $58,171 | $103,991 | $139,411 | $164,587 | $170,802 |

#### (U) Disqualification Events

Neither The Company nor any individual identified by Section 227.503(a) of Regulation Crowdfunding is the subject of a disqualifying event as defined by Section 227.503 of Regulation Crowdfunding.

##### Explanation

A company is not allowed to raise money using Regulation Crowdfunding if certain designated people associated with the Company (including its directors or executive officers) committed certain prohibited acts (mainly concerned with violations of the securities laws) on or after May 16, 2016. (You can read more about these rules in the Educational Materials.) This item requires a company to disclose whether any of those designated people committed any of those prohibited acts before May 16, 2016.

#### (V) Updates on the Progress of the Offering

To track the investment commitments we've received in this Offering, click to see the Progress Bar.

#### (W) Annual Reports for the Company

The Company will file a report with the Securities and Exchange Commission annually and post the report on our website no later than 120 days after the end of each fiscal year. It's possible that at some point, the Company will not be required to file any more annual reports. We will notify you if that happens.

#### (X) Our Compliance with Reporting Obligations

The Company has never raised money using Regulation Crowdfunding before, and therefore has never been required to file any reports.

#### (Y) Other Information Prospective Investors Should Know About

The Issuer may offer 'Perks' as a means of showing appreciation to investors for supporting small community businesses. The offering of 'Perks' by issuers is done purely on a voluntary basis and have no influence upon the terms of the Offering. As such, Investor 'Perks' are not contractual conditions governed by 'the Note' and are not enforceable under 'the Note'.

#### Additional Information Included in the Form C

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|  | Most recent fiscal year-end (tax returns) | Prior fiscal year-end (tax returns) |
| --- | --- | --- |
| Total Assets | $0 | $0 |
| Cash & Cash Equivalents | $0 | $0 |
| Accounts Receivable | $0 | $0 |
| Short-term Debt | $0 | $0 |
| Long-term Debt | $0 | $0 |
| Revenues/Sales | $0 | $0 |
| Cost of Goods Sold | $0 | $0 |
| Taxes Paid | $0 | $0 |
| Net Income | $0 | $0 |

Jurisdictions in which the Company intends to offer the securities:

AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY, B5, GU, PR, VI, 1V

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**Attachment 2:** `cactusblossom_appxa.pdf`

# APPENDIX A: INVESTMENT RISKS

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## YOU MIGHT LOSE YOUR MONEY

When you buy a certificate of deposit from a bank, the Federal government (through the FDIC) guarantees you will get your money back. Buying a Note is not like that at all. The ability of Cactus Blossom Cantina to make the payments you expect, and ultimately to give you your money back, depends on a number of factors, including many beyond our control.

## LIMITED SERVICES

Cactus Blossom Cantina operates with a very limited scope, offering only particular services to potential clients, making them vulnerable to changes in customer preferences.

## LACK OF ACCOUNTING CONTROLS

Larger companies typically have in place strict accounting controls. Smaller companies typically lack these controls, exposing themselves to additional risk.

## COMPETITION

The market in which we operate is highly competitive and could become increasingly competitive with new entrants in the market. Cactus Blossom Cantina competes with many other businesses, both large and small, on the basis of quality, price, location, and customer experience. Changes in customer preference away from Cactus Blossom Cantina's core business or the inability to compete successfully against the with other competitors could negatively affect Cactus Blossom Cantina's financial performance.

## RELIANCE ON MANAGEMENT

As a securities holder, you will not be able to participate in Cactus Blossom Cantina's management or vote on and/or influence any managerial decisions regarding Cactus Blossom Cantina. Furthermore, if the founders or other key personnel of Cactus Blossom Cantina were to leave Cactus Blossom Cantina or become unable to work, Cactus Blossom Cantina (and your investment) could suffer substantially.

## FINANCIAL FORECASTS RISKS

The financial forecasts provided by us herein are reasonable forecasts by us based upon assumption of stable economic conditions and other various assumptions regarding operations. The validity and accuracy of these assumptions will depend in large part on future events over which Cactus Blossom Cantina and the key persons will have no control. Changes in assumptions or their underlying facts could significantly affect the forecasts. To the extent that the assumed events do not occur, the outcome may vary significantly from the projected outcomes. Consequently, there can be no assurance that the actual operating results will correspond to the forecasts provided herein. Additionally, Cactus Blossom Cantina is a newly established entity and therefore has no operating history from which forecasts could be projected with.

## INABILITY TO SELL YOUR INVESTMENT

The law prohibits you from selling your securities (except in certain very limited circumstances) for 12 months after you acquire them. Even after that one-year period, a host of Federal and State securities laws may limit or restrict your ability to sell your securities. Even if you are permitted to sell, you will likely have difficulty finding a buyer because there will be no established market. Given these factors, you should be prepared to hold your investment for its

2

full term.

#### THE COMPANY MIGHT NEED MORE CAPITAL

Cactus Blossom Cantina might need to raise more capital in the future to fund/expand operations, buy property and equipment, hire new team members, market its services, pay overhead and general administrative expenses, or a variety of other reasons. There is no assurance that additional capital will be available when needed, or that it will be available on terms that are not adverse to your interests as an investor. If Cactus Blossom Cantina is unable to obtain additional funding when needed, it could be forced to delay its business plan or even cease operations altogether.

#### CHANGES IN ECONOMIC CONDITIONS COULD HURT CACTUS BLOSSOM CANTINA

Factors like global or national economic recessions, changes in interest rates, changes in credit markets, changes in capital market conditions, declining employment, changes in real estate values, changes in tax policy, changes in political conditions, and wars and other crises, among other factors are unpredictable and could negatively affect Cactus Blossom Cantina's financial performance or ability to continue to operate. In the event Cactus Blossom Cantina ceases operations due to the foregoing factors, it can not guarantee that it will be able to resume operations or generate revenue in the future.

#### NO REGISTRATION UNDER SECURITIES LAWS

The Notes will not be registered with the SEC or the securities regulator of any State. Hence, neither Cactus Blossom Cantina nor the Notes will be subject to the same degree of regulation and scrutiny as if they were registered.

#### INCOMPLETE OFFERING INFORMATION

Title III does not require us to provide you with all the information that would be required in some other kinds of securities offerings, such as a public offering of shares (for example, publicly-traded firms must generally provide investors with quarterly and annual financial statements that have been audited by an independent accounting firm). Although Title III does require extensive information, it is possible that you would make a different decision if you had more information.

#### LACK OF ONGOING INFORMATION

Cactus Blossom Cantina will be required to provide some information to investors for at least 12 months following the offering. However, this information is far more limited than the information that would be required of a publicly-reporting company; and Cactus Blossom Cantina is allowed to stop providing annual information in certain circumstances.

#### UNINSURED LOSSES

Although Cactus Blossom Cantina will carry some insurance, Cactus Blossom Cantina may not carry enough insurance to protect against all risks to the business. Additionally, there are some kinds of risks that are very difficult or impossible to insure against, at least at a reasonable cost. Therefore, Cactus Blossom Cantina could incur an uninsured loss that could damage its business.

#### CHANGES IN LAWS

Changes in laws or regulations, including but not limited to zoning laws, environmental laws, tax

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laws, consumer protection laws, securities laws, antitrust laws, and health care laws, could negatively affect Cactus Blossom Cantina's financial performance or ability to continue to operate. Specifically, any additional regulation on the industry could significantly negatively affect the business.

#### CONFLICT OF INTEREST WITH COMPANIES AND THEIR MANAGEMENT

In many ways, your interests and the interests of Cactus Blossom Cantina's management will coincide: you both want Cactus Blossom Cantina to be as successful as possible. However, your interests might be in conflict in other important areas, including these: You might want Cactus Blossom Cantina to act conservative to make sure they are best equipped to repay the Note obligations, while Cactus Blossom Cantina might prefer to spend aggressively to invest in the business. You would like to keep the compensation of managers low, while managers want to make as much as they can.

#### FUTURE INVESTORS MIGHT HAVE SUPERIOR RIGHTS

If Cactus Blossom Cantina needs more capital in the future and takes on additional debt or other sources of financing, the new investors might have rights superior to yours. For example, they might have the right to be paid before you are, to receive larger distributions, to have a greater voice in management, or otherwise.

#### THE COMPANY IS NOT SUBJECT TO THE CORPORATE GOVERNANCE REQUIREMENTS OF THE NATIONAL SECURITIES EXCHANGES

Any company whose securities are listed on a national stock exchange (for example, the New York Stock Exchange) is subject to a number of rules about corporate governance that are intended to protect investors. For example, the major U.S. stock exchanges require listed companies to have an audit committee made up entirely of independent members of the board of directors (i.e., directors with no material outside relationships with Cactus Blossom Cantina or management), which is responsible for monitoring Cactus Blossom Cantina's compliance with the law. Cactus Blossom Cantina will not be required to implement these and other investor protections.

#### YOU HAVE A LIMITED UPSIDE

Notes include a maximum amount you can receive. You cannot receive more than that even if Cactus Blossom Cantina is significantly more successful than your initial expectations.

#### YOU DO HAVE A DOWNSIDE

Conversely, if Cactus Blossom Cantina fails to generate enough revenue, you could lose some or all of your money.

#### PAYMENTS AND RETURN ARE UNPREDICTABLE

Because your payments are based on the revenue of Cactus Blossom Cantina, and the revenue of Cactus Blossom Cantina can go up or down (or even disappear altogether) unpredictably, it is impossible to predict how much you will receive and when. And because the payments are unpredictable, so is your ultimate return.

#### THE NOTES ARE UNSECURED AND UNINSURED

The Notes are not secured by any collateral, nor are they guaranteed or insured by the FDIC or

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any other entity.

#### SUBORDINATION

The Notes shall be subordinated to all indebtedness of Cactus Blossom Cantina to banks, commercial finance lenders, leasing and equipment financing institutions, and/or other institutions regularly engaged in the business of lending money.

#### LACK OF GUARANTY

The Notes are not personally guaranteed by any of the founders or any other person.

#### LIMITATION OF INDIVIDUAL RIGHTS IN EVENT OF DEFAULT

In the event of a default under the Notes, you will not be able to enforce your rights individually (for example, by bringing a lawsuit). Instead, a representative will be appointed according to the procedures set forth in the Note Indenture. It's possible that you will not like the representative, or that the representative will do things you believe are wrong or misguided. If an event of default has occurred and a representative has been appointed, all of the representative's reasonable expenses must be paid before any further payments are made with respect to the Notes.

#### COVID-19 IMPACT

The ongoing COVID-19 pandemic may impact the Company's ability to generate revenue and/or continue operations. If operations are ceased due to COVID-19 restrictions, the Company can not guarantee that it will resume operations in the future.

#### LIMITED OPERATING HISTORY

Cactus Blossom Cantina is a newly established entity and has no history for prospective investors to consider.

5

**Attachment 3:** `cactusblossom_appxb.pdf`

# APPENDIX B:
FINANCIAL STATEMENTS
(Unaudited)

1

# **Cactus Blossom Cantina, LLC**  
 **Income Statement - unaudited**  
 **For the periods ended 3/1/23**

|  | Current Period 12/1/22 to 3/1/23 | Prior Period 9/1/22 to 11/30/22 |  |
| --- | --- | --- | --- |
| REVENUES |  |  |  |
| Sales | $ - | $ - |  |
| Other Revenue | - | - |  |
| TOTAL REVENUES | - | - |  |
| COST OF GOODS SOLD |  |  |  |
| Cost of Sales | - | - |  |
| Supplies | - | - |  |
| Other Direct Costs | - | - |  |
| TOTAL COST OF GOODS SOLD | - | - |  |
| GROSS PROFIT (LOSS) | - | - |  |
| OPERATING EXPENSES |  |  |  |
| Advertising and Promotion | 120.00 | 120.00 |  |
| Bank Service Charges | - | 4.00 |  |
| Business Licenses and Permits | - | - |  |
| Computer and Internet | 1,707.54 | 1,537.60 |  |
| Depreciation | - | - |  |
| Dues and Subscriptions | - | - |  |
| Insurance | - | - |  |
| Meals and Entertainment | - | - |  |
| Miscellaneous Expense | 6,748.82 | - | Appraisals & inspections |
| Office Supplies | - | - |  |
| Payroll Processing | - | - |  |
| Professional Services - Legal, Accounting | - | - |  |
| Occupancy | - | - |  |
| Rental Payments | - | - |  |
| Salaries | 17,750.00 | 4,750.00 |  |
| Payroll Taxes and Benefits | - | - |  |
| Travel | - | - |  |
| Utilities | - | - |  |
| Website Development | 1,333.84 | 536.38 |  |
| TOTAL OPERATING EXPENSES | 27,660.20 | 6,947.98 |  |
| OPERATING PROFIT (LOSS) | (27,660.20) | (6,947.98) |  |
| INTEREST (INCOME), EXPENSE & TAXES |  |  |  |
| Interest (Income) | - | - |  |
| Interest Expense | - | - |  |
| Income Tax Expense | - | - |  |
| TOTAL INTEREST (INCOME), EXPENSE & TAXES | - | - |  |
| NET INCOME (LOSS) | $(27,660.20) | $(6,947.98) |  |

# **Cactus Blossom Cantina, LLC**
**Balance Sheet - unaudited**
**For the period ended 12/31/22**

|  | Current Period 31-Dec-22 |
| --- | --- |
| ASSETS |  |
| Current Assets: |  |
| Cash | $ - |
| Petty Cash | - |
| Accounts Receivables | - |
| Inventory | - |
| Prepaid Expenses | - |
| Employee Advances | - |
| Temporary Investments | - |
| Total Current Assets | - |
| Fixed Assets: |  |
| Land | - |
| Buildings | - |
| Furniture and Equipment | - |
| Computer Equipment | - |
| Vehicles | - |
| Less: Accumulated Depreciation | - |
| Total Fixed Assets | - |
| Other Assets: |  |
| Trademarks | - |
| Patents | - |
| Security Deposits | - |
| Other Assets | - |
| Total Other Assets | - |
| TOTAL ASSETS | $ - |
| LIABILITIES |  |
| Current Liabilities: |  |
| Accounts Payable | $ - |
| Business Credit Cards | - |
| Sales Tax Payable | - |
| Payroll Liabilities | - |
| Other Liabilities | - |

| Current Portion of Long-Term Debt | - |
| --- | --- |
| Total Current Liabilities | - |

**Long-Term Liabilities:**

| Notes Payable | - |
| --- | --- |
| Mortgage Payable | - |
| Less: Current portion of Long-term debt | - |
| Total Long-Term Liabilities | - |

**EQUITY**

| Capital Stock/Partner's Equity | - |
| --- | --- |
| Opening Retained Earnings | - |
| Dividends Paid/Owner's Draw | - |
| Net Income (Loss) | - |
| Total Equity | - |

**TOTAL LIABILITIES & EQUITY**

$

Balance Sheet Check

# **Cactus Blossom Cantina, LLC**  
 **Statement of Cash Flow - unaudited**  
 **For the period ended 3/1/23**

|  | Current Period 12/1/22 to 3/1/23 | Prior Period 9/1/22 to 11/1/22 |
| --- | --- | --- |
| CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |
| Net Income | - | - |
| Adjustments to Reconcile Net Income to Net Cash Flows From Operating Activities: |  |  |
| Depreciation | - | - |
| Decrease (Increase) in Operating Assets: |  |  |
| Trade Accounts Receivable | - | - |
| Inventory | - | - |
| Prepaid Income Taxes | - | - |
| Increase (Decrease) in Operating Liabilities: |  |  |
| Accounts Payable | - | - |
| Credit Cards Payable | - | - |
| Total Adjustments | - | - |
| Net Cash Flows From Operating Activities | - | - |
| CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |
| Purchase of Property and Equipment | - | - |
| Net Cash Flows From Investing Activities | - | - |
| CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |
| Repayment of Debt | - | - |
| Member's Withdrawals | - | - |
| Net Cash Flows From Financing Activities | - | - |
| NET INCREASE (DECREASE) IN CASH | - | - |
| CASH - BEGINNING | - | - |
| CASH - ENDING | - | - |

I, Christina Marie Brogan, certify that:

1. The financial statements of Cactus Blossom Cantina, LLC included in this Form are true and complete in all material respects; and
2. The tax return information of Cactus Blossom Cantina, LLC has not been included in this Form as Cactus Blossom Cantina, LLC was formed on 09/13/2022 and has not filed a tax return to date.

Signature Christina Marie Brogan

Name: Christina Marie Brogan

Title: Owner/Executive Chef

1

**Attachment 4:** `cactusblossom_rsn.pdf`

![img-0.jpeg](img-0.jpeg)

## INVESTMENT AGREEMENT

facilitated by

![img-1.jpeg](img-1.jpeg)

1

# INVESTMENT AGREEMENT

This is an Investment Agreement, by and between **Cactus Blossom Cantina, LLC** (the “Company”) and the purchaser identified on the Investor Information Sheet (“Purchaser”).

## BACKGROUND

Purchaser wishes to purchase a Revenue Sharing Note issued by the Company through www.Mainvest.com (the “Site”). NOW, THEREFORE, acknowledging the receipt of adequate consideration and intending to be legally bound, the parties hereby agree as follows:

### 1. Defined Terms

Capitalized terms that are not otherwise defined in this Investment Agreement have the meanings given to them in the Company’s Form C and its attachments, all available at the Site. In this Investment Agreement, we refer to the Form C and its attachments as the “Disclosure Document.” We sometimes refer to the Company using terms like “we” or “us,” and to Purchaser using terms like “you” or “your.”

### 2. Purchase of Note

Subject to the terms and conditions of this Investment Agreement, the Company hereby agrees to sell to you, and you hereby agree to purchase from the Company, a promissory note as described in the Disclosure Document, in the amount set forth on the Investor Information Sheet. We refer to your promissory note as the “Note.”

### 3. No Right to Cancel

You do not have the right to cancel your subscription or change your mind. Once you sign this Investment Agreement, you are obligated to purchase the Note, no matter what, even if the Offering is over-subscribed and the amount of your Note is reduced.

### 4. Our Right to Reject Investment

In contrast, we have the right to reject your subscription for any reason or for no reason, in our sole discretion. If we reject your subscription, any money you have given us will be returned to you.

### 5. Your Promises

You promise that:

#### 5.1. Accuracy of Information

All of the information you have given to us, whether in this Investment Agreement, at the Site, or otherwise, is accurate and we may rely on it. If any of the information you have given to us changes before we accept your subscription, you will notify us immediately. If any of the information you have given to us is inaccurate and we are harmed as a result, you will indemnify us, meaning you will pay any damages.

#### 5.2. Review of Information

You have read and understand the Disclosure Document. Without limiting that sentence, you have read and understand the Note and the Revenue Sharing Agreement.

#### 5.3. Risks

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You understand all the risks of investing, including the risk that you could lose all your money. Without limiting that statement, you have reviewed and understand all the risks listed in the Educational Materials at the Site and in the Disclosure Document.

#### 5.4. No Representations

Nobody has made any promises or representations to you, except the information in the Disclosure Document. Nobody has guaranteed any financial outcome of your investment.

#### 5.5. Opportunity to Ask Questions

You have had the opportunity to ask questions about the Company and the investment. All your questions have been answered to your satisfaction.

#### 5.6. Your Legal Power to Sign and Invest

You have the legal power to sign this Investment Agreement and purchase the Note.

#### 5.7. No Government Approval

You understand that no state or federal authority has reviewed this Investment Agreement or the Note or made any finding relating to the value or fairness of the investment.

#### 5.8. No Transfer

You understand that under the terms of the Revenue Sharing Agreement, the Note may not be transferred without our consent. Also, securities laws limit transfer of the Note. Finally, there is currently no market for the Note, meaning it might be hard to find a buyer. As a result, you should be prepared to hold the Note through its maturity.

#### 5.9. No Advice

We have not provided you with any investment, financial, or tax advice. Instead, we have advised you to consult with your own legal and financial advisors and tax experts.

#### 5.10. Tax Treatment

We have not promised you any particular tax outcome from buying or holding the Note.

#### 5.11. Acting On Your Own Behalf

You are acting on your own behalf in purchasing the Note, not on behalf of anyone else.

#### 5.12. Investment Purpose

You are purchasing the Note solely as an investment, not with an intent to re-sell or “distribute” any part of it.

#### 5.13. Anti-Money Laundering Laws

Your investment will not, by itself, cause the Company to be in violation of any “anti-money laundering” laws, including, without limitation, the United States Bank Secrecy Act, the United States Money Laundering Control Act of 1986, and the United States International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001.

#### 5.14. Additional Information

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At our request, you will provide further documentation verifying the source of the money used to purchase the Note.

#### 5.15. Disclosure

You understand that we may release confidential information about you to government authorities if we determine, in our sole discretion after consultation with our lawyer, that releasing such information is in the best interest of the Company or if we are required to do so by such government authorities.

#### 5.16. Additional Documents

You will execute any additional documents we request if we reasonably believe those documents are necessary or appropriate and explain why.

#### 5.17. No Violations

Your purchase of the Note will not violate any law or conflict with any contract to which you are a party.

#### 5.18. Enforceability

This Investment Agreement is enforceable against you in accordance with its terms.

#### 5.19. No Inconsistent Statements

No person has made any oral or written statements or representations to you that are inconsistent with the information in this Investment Agreement and the Disclosure Materials.

#### 5.20. Financial Forecasts

You understand that any financial forecasts or projections are based on estimates and assumptions we believe to be reasonable but are highly speculative. Given the industry, our actual results may vary from any forecasts or projections.

#### 5.21. Notification

If you discover at any time that any of the promises in this section 5 are untrue, you will notify us right away.

#### 5.22. Additional Promises by Individuals

If you are a natural person (not an entity), you also promise that:

##### 5.22.1. U.S. Citizen or Resident

You are a citizen or permanent resident (green card) of the United States.

##### 5.22.2. Financial Wherewithal

You can afford this investment, even if you lose your money. You don't rely on this money for your current needs, like rent or utilities.

##### 5.22.3. Anti-Terrorism and Money Laundering Laws

None of the money used to purchase the Note was derived from or related to any activity

4

that is illegal under United States law, and you are not on any list of “Specially Designated Nationals” or known or suspected terrorists that has been generated by the Office of Foreign Assets Control of the United States Department of Treasury (“OFAC”), nor are you a citizen or resident of any country that is subject to embargo or trade sanctions enforced by OFAC.

## 6. Confidentiality

The information we have provided to you about the Company, including the information in the Disclosure Document, is confidential. You will not reveal such information to anyone or use such information for your own benefit, except to purchase the Note.

## 7. Re-Purchase of Note

If we decide that you provided us with inaccurate information or have otherwise violated your obligations, or if required by any applicable law or regulation related to terrorism, money laundering, and similar activities, we may (but shall not be required to) repurchase your Note for an amount equal to the principal amount outstanding.

## 8. Governing Law

Your relationship with us shall be governed by Massachusetts law, without taking into account principles of conflicts of law.

## 9. Arbitration

### 9.1. Right to Arbitrate Claims

If any kind of legal claim arises between us as a result of your purchase of the Note, either of us will have the right to arbitrate the claim, rather than use the courts. There are only three exceptions to this rule. First, we will not invoke our right to arbitrate a claim you bring in Small Claims Court or an equivalent court, if any, so long as the claim is pending only in that court. Second, we have the right to seek an injunction in court if you violate or threaten to violate your obligations. Third, disputes arising under the Note or the Revenue Sharing Agreement will be handled in the manner described in the Revenue Sharing Agreement.

### 9.2. Place of Arbitration; Rules

All arbitration will be conducted in Massachusetts unless we agree otherwise in writing in a specific case. All arbitration will be conducted before a single arbitrator in accordance with the rules of the American Arbitration Association.

### 9.3. Appeal of Award

Within thirty (30) days of a final award by the single arbitrator, you or we may appeal the award for reconsideration by a three-arbitrator panel. If you or we appeal, the other party may cross-appeal within thirty (30) days after notice of the appeal. The panel will reconsider all aspects of the initial award that are appealed, including related findings of fact.

### 9.4. Effect of Award

Any award by the individual arbitrator that is not subject to appeal, and any panel award on appeal, shall be final and binding, except for any appeal right under the Federal Arbitration Act, and may be entered as a judgment in any court of competent jurisdiction.

5

### 9.5. No Class Action Claims

NO ARBITRATION SHALL PROCEED ON A CLASS, REPRESENTATIVE, OR COLLECTIVE BASIS. No party may join, consolidate, or otherwise bring claims for or on behalf of two or more individuals or unrelated corporate entities in the same arbitration unless those persons are parties to a single transaction. An award in arbitration shall determine the rights and obligations of the named parties only, and only with respect to the claims in arbitration, and shall not (i) determine the rights, obligations, or interests of anyone other than a named party, or resolve any claim of anyone other than a named party, or (ii) make an award for the benefit of, or against, anyone other than a named party. No administrator or arbitrator shall have the power or authority to waive, modify, or fail to enforce this paragraph, and any attempt to do so, whether by rule, policy, arbitration decision or otherwise, shall be invalid and unenforceable. Any challenge to the validity of this paragraph shall be determined exclusively by a court and not by the administrator or any arbitrator. If this paragraph shall be deemed unenforceable, then any proceeding in the nature of a class action shall be handled in court, not in arbitration.

### 10. Consent to Electronic Delivery

You agree that we may deliver all notices, tax reports and other documents and information to you by email or another electronic delivery method we choose. You agree to tell us right away if you change your email address or home mailing address so we can send information to the new address.

### 11. Notices

All notices between us will be electronic. You will contact us by email at the address indicated on the Company Signature Page below. We will contact you by email at the email address below. Either of us may change our email address by notifying the other (by email). Any notice will be considered to have been received on the day it was sent by email, unless the recipient can demonstrate that a problem occurred with delivery. You should designate our email address as a “safe sender” so our emails do not get trapped in your spam filter.

### 12. Limitations on Damages

WE WILL NOT BE LIABLE TO YOU FOR ANY LOST PROFITS OR SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, EVEN IF YOU TELL US YOU MIGHT INCUR THOSE DAMAGES. This means that at most, you can sue us for the amount of your investment. You can’t sue us for anything else.

### 13. Waiver of Jury Rights

IN ANY DISPUTE WITH US, YOU AGREE TO WAIVE YOUR RIGHT TO A TRIAL BY JURY. This means that any dispute will be heard by an arbitrator or a judge, not a jury.

### 14. Miscellaneous Provisions

#### 14.1. No Transfer

You may not transfer your rights or obligations.

#### 14.2. Right to Legal Fees

If we have a legal dispute with you, the losing party will pay the costs of the winning party, including reasonable legal fees.

#### 14.3. Headings

6

The headings used in this Investment Agreement (e.g., the word “Headings” in this paragraph), are used only for convenience and have no legal significance.

#### 14.4. No Other Agreements

This Investment Agreement and the Exhibits attached hereto are the only agreements between us.

#### 14.5 Electronic Signature

You will sign this Investment Agreement electronically, rather than physically.

7

# COMPANY SIGNATURE PAGE

Intending to be bound by this Investment Agreement and the Exhibits attached hereto, the Company has executed this document:

Signature: Christina Marie Brogan
Name: Christina Marie Brogan
Title: Owner/Executive Chef
Date: 03/10/2023
Email Address: christina@cactusblossomcantina.com

8

# INVESTOR INFORMATION SHEET

*If Purchaser is an entity*

Name of Purchaser: ____________________ Name of Affiliated Person: ____________________

Email Address: ____________________ Title: ____________________

Mailing Address: ____________________ State of Organization: ____________________

____________________
____________________

# ADDITIONAL TERMS

Investment Amount: ____________________

Revenue Percentage: ____________________

Principal Amount: ____________________

Purchaser Percentage: ____________________

# INVESTOR SIGNATURE

Signature: ____________________

Date: ____________________

9

# EXHIBIT A

## REVENUE SHARING NOTE

THIS REVENUE SHARING NOTE (THE “NOTE”) HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD OR TRANSFERRED WITHOUT THE CONSENT OF THE COMPANY AND COMPLYING WITH SECURITIES LAWS.

THIS NOTE REPRESENTS THE OBLIGATION OF **Cactus Blossom Cantina, LLC** (THE “COMPANY”) AND WAS ISSUED PURSUANT TO (i) AN OFFERING MEMORANDUM FILED WITH THE SEC IN CONJUNCTION WITH THE COMPANY’S FORM C, AND (ii) THE INVESTMENT AGREEMENT, WHICH ARE AVAILABLE FOR REVIEW AT WWW.MAINVEST.COM (THE “SITE”).

CAPITALIZED TERMS THAT ARE NOT OTHERWISE DEFINED IN THIS NOTE HAVE THE MEANINGS GIVEN TO THEM IN THOSE DOCUMENTS.

| Issuer | Cactus Blossom Cantina, LLC |
| --- | --- |
| Maximum Payment Multiple 2 - Early Investors - All Other Investors | 1.6 x 1.5 x |
| Revenue Percentage 1 | 1.5 - 4.1% |
| Payment Frequency | Quarterly |
| Sharing Start Date | The first day after disbursement that the company has revenues greater than one ($1) dollar |
| First Payment Date | The last day of the calendar quarter ending not less than 90 days after the Sharing Start Date |
| Seniority | Subordinated |
| Securitization | Unsecured |
| Maturity Date | 03/31/2031 |
| Accrual Rate | 3.65% |

$^{1}$ The rate of revenue sharing is calculated on a linear scale with a minimum rate of 1.5% and a maximum rate of 4.1% and is rounded to the nearest 1/10th percent. The final rate is based on the amount raised and is calculated after the offering has successfully closed. As the amount raised in the offering increases, the rate of revenue sharing increases.

$^{2}$ To reward early participation, the investors who contribute the first $45,000.0 raised in the offering will receive a 1.6x cap. Investors who contribute after $45,000.0 has been raised in the offering will receive a 1.5x cap.

10

## 1. Revenue Sharing Agreement

This Note is subject to the Company's Revenue Sharing Agreement attached hereto as Exhibit B as if all the terms of the Revenue Sharing Agreement were set forth in this Note.

## 2 Payment Obligation

### 2.1 First Payment

On the First Payment Date, the Company shall pay to Purchaser an amount equal to (i) the Purchaser Percentage (as defined in the Investor Information Sheet above), multiplied by (ii) the Revenue Percentage, multiplied by (iii) the Total Revenue of the Company for the period beginning on the Sharing Start Date and ending on the last day of the month before the First Payment Date.

### 2.2. Subsequent Quarterly Payments

On the date three (3) months following the First Payment Date, and on each three (3) month anniversary thereafter, the Company shall pay to Purchaser an amount equal to (i) the Purchaser Percentage, multiplied by (ii) the Revenue Percentage, multiplied by (iii) the Total Revenue of the Company for the period of three (3) months beginning immediately on the day after the previous calculation.

### 2.3. Prepayment

At any time, without notice to Purchaser, The Company may pay to Purchaser any amount in excess of the payments required by sections 2.1 and 2.2.

### 2.4. Termination of Payments

Notwithstanding section 2.2, no payments shall be due to Purchaser after Purchaser has received an aggregate amount under this Note, including payments made by the Company pursuant to section 2.3, equal to (i) the Principal Amount (as defined in the Investor Information Sheet above), multiplied by (ii) the Maximum Payment Multiple. We refer to the result of this multiplication as the 'Maximum Payment Amount.'

### 2.5. Payment on Maturity Date

Unless payments have already terminated as a result of section 2.4, on the Maturity Date the Company shall pay to Purchaser an amount equal to the Maximum Payment Amount minus the aggregate of all payments made by the Company to Purchaser under this Note, including payments made by the Company pursuant to section 2.3.

### 2.6. Payment on Change of Control

#### 2.6.1. General Rule

If the Company experiences a Change of Control, then the Company shall promptly pay to Purchaser an amount equal to the Maximum Payment Amount minus the aggregate of all payments made by the Company to Purchaser under this Note, including payments made by the Company pursuant to section 2.3.

#### 2.6.2 Change of Control Defined

For purposes of this Note, the term 'Change of Control' means (i) the sale, transfer

11

or other disposition of all or substantially all of the Company's assets and business; or (ii) the sale, transfer or other disposition of outstanding securities of the Company representing at least Fifty Percent (50%) of the voting power of the Company; or (iii) a merger or consolidation of the Company with or into another entity, such as another limited liability or corporation, except a merger or consolidation in which the owners of the Company's equity securities immediately before such merger or consolidation continue to own securities representing more than Fifty Percent (50%) of the voting power of the Company or the surviving or acquiring entity; or (iv) the liquidation, dissolution or winding up of the Company. It does not mean a change in the corporate form of the Company, e.g., a change from a limited liability company to a corporation, or a change in the jurisdiction of the Company's organization.

### 2.7. Total Revenue Defined

The 'Total Revenue' of the Company for any period means the gross sales price of all merchandise, gift or merchandise certificates, or services sold by the Company during the period, using the same method of accounting used for Federal income tax purposes, reduced by (i) the sales price of all merchandise returned by customers and accepted for full credit or the amount of discounts and allowances made on such merchandise to the extent previously included in revenue; (ii) the amount of any sales taxes, so-called luxury taxes, consumers' excise taxes, gross receipts taxes, and other similar taxes imposed upon the sale of merchandise or services, but only if collected separately from the selling price of merchandise or services and collected from customers and paid to the taxing authority; (iii) the amount of any sales of fixtures, equipment, or other property which are not stock in trade of the Company; (iv) the amount of any sales of gift or merchandise certificates until converted to a sale by redemption for actual merchandise or services; (v) any cash or credit discount, allowance, or refund made upon any sales; and (vi) tips or gratuities paid by customers to or for the benefit of the Company's employees which are retained by the Company's employees.

### 3. Nature of Obligation

For all purposes, including but limited to Federal and State tax purposes, this Note shall be treated as a debt and not as an equity interest.

### 4) Treatment of Interest

For Federal and State tax purposes (i) interest shall accrue at the Accrual Rate, and (ii) payments made pursuant to section 2 shall first be treated as interest, up to the amount of interest so accrued, then shall be treated as principal, until Purchaser has received, as principal, the entire Principal Amount, and then shall be treated as interest.

### 5) No Violation of Usury Laws

If any payment required under this Note would otherwise violate any law limiting the amount of interest that may be charged (i.e., 'usury' laws), then, notwithstanding section 3, the amount in excess of the allowable interest payment shall be deemed to be a direct interest in the Company's income, and not as interest.

### 6) Consequences of Default

Upon the occurrence of any Event of Default, as defined in the Revenue Sharing Agreement:

6.1 Any unpaid amounts under section 2 shall bear interest at one and one-quarter percent (1.25%) per month;

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6.2. Purchaser may immediately demand from Company an amount equal to the Maximum Payment Amount minus the aggregate of all payments made by the Company to Purchaser under this Note, including payments made by the Company pursuant to section 2.3; and

6.3. Purchaser may exercise any other remedy available in the Revenue Sharing Agreement or by law.

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# EXHIBIT B

## REVENUE SHARING AGREEMENT

This Revenue Sharing Agreement is entered into by **Cactus Blossom Cantina, LLC** (the “Company”) and each person who acquires a Revenue Sharing Note referencing this Revenue Sharing Agreement (a “Holder”). Background A. The Company sold Revenue Sharing Notes (the “Notes”) to the Holders through Mainvest, Inc. (the “Portal”) at www.Mainvest.com (the “Site”). B. This Revenue Sharing Agreement sets forth certain terms applicable to the Notes that are not set forth in the Notes themselves. NOW, THEREFORE, acknowledging the receipt of adequate consideration and intending to be legally bound, the parties hereby agree as follows:

#### 1. Application of this Revenue Sharing Agreement to Notes

The terms of this Revenue Sharing Agreement shall apply to each Note as if the terms of this Revenue Sharing Agreement were fully set forth in each Note.

#### 2. Pro Rata Payments

Payments to the Holders shall be pro rata with other Holders who purchased Notes in the same offering, based on the Principal Amount of each such Note. If a Holder receives a payment in excess of his, her, or its pro rata share, the excess shall be deemed to be held in trust for the benefit of other Holders.

#### 3. Form of Payments

All payments to Holders will be made as Automated Clearing House (ACH) deposits into an account designated by each Holder at the Site.

#### 4. Withholding

If any withholding tax is imposed on any payment made by the Company to a Holder pursuant to a Note, such tax shall reduce the amount otherwise payable with respect to such payment. Upon request of the Company, the Holder shall provide the Company with an Internal Revenue Service Form W-9 or other similar withholding certificate of a State, local or foreign governmental authority such that the Company may make payments under the Note without deduction for, or at a reduced rate of deduction for, any tax.

#### 5. Voting Rights

Ownership of a Note does not give the Holder the right to vote or otherwise participate in the management of the Company.

#### 6. Restrictions on Holders

No Holder may, under any circumstances (i) take any action to collect a Note, except as provided in this Revenue Sharing Agreement; or (ii) record, or try to record, a Note or any other instrument relating to a Note.

#### 7. Transfers of Notes

##### 7.1. Conditions on Permitted Transfers

In the event a Holder proposes to sell or transfer a Note, the Company may, but shall not be required to, impose reasonable conditions on such sale or transfer including, but not limited,

14

to: (i) Notes may be transferred only in whole units, i.e., fractions of Notes may not be transferred; (ii) the transferee shall agree in writing to be bound by this Revenue Sharing Agreement; (iii) the transferor shall provide the Company with an opinion of counsel, satisfactory in form and substance to the Company's counsel, stating that the transfer is exempt from registration under the Securities Act of 1933 and other applicable securities laws; and (iv) the transferor and transferee shall together pay in advance for any reasonable expenses the Company expects to incur in connection with the transfer, including attorneys' fees.

## 7.2. First Right of Refusal

### 7.2.1. In General

In the event a Holder (the 'Selling Holder') desires to sell or otherwise transfer one or more Notes (the 'Transfer Notes') to a third party, he, she, or it shall notify the Company, specifying the Note(s) to be transferred, the purchase price, the form of consideration, and all other material terms, as well as a copy of the legally-binding, non-contingent agreement setting forth such terms (the 'Sales Notice'). Within thirty (30) days after receipt of the Sales Notice, the Company shall notify the Selling Holder whether the Company or a person designated by the Company elects to purchase all (but not less than all) of the Transfer Notes. If the Company has not elected to purchase all of the Transfer Notes within the thirty (30) day period described above, the Selling Holder may proceed with the sale to the proposed purchaser, subject to section 5.1. If the Company does not elect to purchase the Transfer Notes within the thirty (30) day period described above, and the Selling Holder and the purchaser subsequently agree to a reduction of the purchase price, a change in the consideration from cash or readily tradeable securities to deferred payment obligations or non-tradeable securities, or any other material change to the terms set forth in the Sales Notice, such agreement between the Selling Holder and the purchaser shall be treated as a new offer and shall again be subject to this section.

### 7.2.2. Exception

This section 7.2 (the Company's first right of refusal) will not apply to a transfer by a Holder to or for the benefit of the Holder's spouse, child, or grandchild, or to a trust for their exclusive benefit. However, the transferee must sign a document agreeing to be bound by all of the terms and conditions of this Revenue Sharing Agreement, and the transferee may not transfer the Note under this section 7.2.2.

## 8. No Security Interest

Holders shall have no security interest in any of the Company's assets or other collateral. Nothing in this Revenue Sharing Agreement or in the Notes, express or implied, shall be construed to constitute a security interest under the Uniform Commercial Code or similar legislation, now in effect or hereafter enacted and made effective, in any jurisdiction.

## 9. Subordination

Each Note shall be subordinated to all indebtedness of the Company to banks, commercial finance lenders, leasing and equipment financing institutions and/or other institutions regularly engaged in the business of lending money.

## 10. Amendment

15

Each Note and this Revenue Sharing Agreement may be amended with the written consent of (i) the Company, and (ii) Holders who own more than fifty percent (50%) of all such Notes issued in the same offering.

#### 11. No Pre-Emptive Rights

If the Company raises more capital following the offering in which the Notes were issued, the Company might offer to Holders the opportunity to invest, but will not be required to do so. This means the Holders do not have 'pre-emptive rights' to invest.

#### 12. Waivers

The Company hereby waives presentment for payment, demand, notice of dishonor, protest and notice of protest of this Note and all other notices in connection with delivery, acceptance, performance, default or enforcement of the payment of this Note. Liability hereunder shall be unconditional and shall not be affected in any manner by any indulgence, extension of time, renewal, waiver, or modification consented to by Holders.

#### 13. Defaults and Remedies

##### 13.1 Events of Default

An 'Event of Default' shall be deemed to have occurred for purposes of this Revenue Sharing Agreement if (and only if):

13.1.1. The Company fails to pay to a Holder any amount due and such failure continues for fifteen (15) days following written notice to the Company; or

13.1.2. The Company files (i) a voluntary petition in bankruptcy; or (ii) a petition or an answer seeking reorganization or an arrangement with creditors, or to take advantage of any insolvency, readjustment of loan, dissolution or liquidation law or statute; or (iii) an answer admitting the material allegations of a petition filed against the Company in any proceeding under any such law; or

13.1.3. An order, judgment, or decree is entered, without the consent of the Company, by any court of competent jurisdiction, appointing a receiver, trustee, or liquidator for the Company, if such order, judgment or decree shall continue unstayed and in effect for a period of sixty (60) days; or

13.1.4. The Company is in default with respect to any other of its debt obligations; or

13.1.5. The Company becomes unable to pay its debts as they become due; or

13.1.6. The Company breaches any of its obligations under this Revenue Sharing Agreement and such breach remains uncured for ninety (90) days following written notice.

##### 13.2 Force Majeure

An Event of Default shall not be deemed to have occurred as a result of a breach or failure by the Company in such breach or failure is caused by Acts of God, government restrictions (including the denial or cancellation of any export or other necessary license), wars, insurrections and/or any other cause beyond the reasonable control of the Company; provided that the Company shall give Holders written notice explaining the cause and its effect in reasonable detail. Dates by which performance obligations are scheduled to be met will be

16

extended for a period of time equal to the time lost due to any delay so caused.

### 13.3. Consequences of Default

#### 13.3.1. Notice

Upon the occurrence of an Event of Default, the Company shall provide written notice to all Holders (a “Notice of Default”). The Notice of Default shall (i) describe the circumstances surrounding the Event of Default, (ii) reference the need for the Holders to appoint a Representative pursuant to section 13.3.2 below, and (iii) be accompanied by (A) a copy of this Revenue Sharing Agreement, and (B) a list of all of the Holders, the email address of each Holder on file with the Company, and the original Principal Amount with respect to each Holder’s Note.

#### 13.3.2. Appointment of Representative

##### (a) Selection

Upon the occurrence of an Event of Default, a single representative shall be appointed to represent all of the Holders (the “Representative”). The Representative (i) may, but need not, be a Holder; (ii) shall not be affiliated with or related to the Company; and (iii) shall be selected by the Holders as follows:

1. For a period of up to twenty (20) business days following the Notice of Default, the Holders shall confer among themselves as to the appointment of a Representative.
2. If at any time during such twenty (20) day period, the Holders of a majority of the Notes, measured by the original Principal Amount of each such Note (a “Majority”), agree as to the appointment of a Representative, that person shall be the Representative.
3. (3) If, at the conclusion of such twenty (20) day period, no Representative has been appointed by a Majority, each Holder shall submit the name of up to three (3) persons such Holder would accept as the Representative.
4. (4) With each name appearing on any Holder’s list there shall be associated a number equal to the total principal amount outstanding of all Notes held by Holders whose lists included such name.
5. (5) The person whose name is associated with the largest number shall be appointed as the Representative.

##### (b) Authority of Representative

The Representative shall have the power, on behalf of each Holder, to pursue such remedies as may be available by law and pursuant to this Revenue Sharing Agreement, for the purpose of maximizing the return to the Holders as a group, and to settle the claims of each Holder on such terms as the Representative may determine in its sole and unlimited discretion, subject to the other provisions of this Revenue Sharing Agreement. The Representative may pursue such remedies notwithstanding that the Representative does not have physical possession of the Notes and without naming the Holders as parties.

17

#### (c) Power of Attorney

Upon the appointment of a Representative, each Holder shall be deemed to have granted to the Representative a limited Power of Attorney for the purpose of carrying out such Representative's responsibilities under this Revenue Sharing Agreement. Each Holder shall, upon the request of the Representative, execute such additional documents and instruments as may be reasonably necessary to confirm such limited Power of Attorney and otherwise carry out the purposes of this Revenue Sharing Agreement.

#### (d) No Separate Claims

No Holder may bring any claim against the Company to enforce the payment obligation evidenced by a Note. All such claims may be brought only by the Representative, acting on behalf of, and in the name of, each Holder, in accordance with the provisions of this Revenue Sharing Agreement.

#### (e) Release of Claims by Holders

Each Holder hereby releases the Representative for all claims arising from the Representative's performance of its services pursuant to this Revenue Sharing Agreement, except and to the extent that a Holder can demonstrate by clear and convincing evidence that such act or omission constituted gross negligence or intentional misconduct.

#### (f) Fees and Expenses of Representative

The reasonable fees and costs of the Representative, including but not limited to reasonable attorneys' fees, shall be the obligation of the Company, and shall be added on to the amount otherwise payable with respect to the Notes, and no Holder shall be obligated to pay such fees or costs directly; provided, however, that following an Event of Default, any further payments made by the Company shall first be used to pay the reasonable fees and costs of the Representative, and not to make any payments with respect to the Notes, and if any Holder shall receive any payment with respect to his, her, or its Note before all of the reasonable fees and costs of the Representative have been paid, such Holder shall promptly pay such amount to the Representative.

#### (g) Resignation of Representative

A Representative may resign at any time by giving notice to the Company and all of the Holders of the Notes at least thirty (30) days before such resignation is to become effective. Upon the resignation of a Representative, a replacement shall be selected by the affirmative vote of Holders holding a majority of the Notes, measured by outstanding principal amount. If such Holders have not selected a replacement Representative within sixty (60) days following the effective date of the resignation, then Portal may, at any time, by giving notice to the Company and all of the Holders, designate a replacement Representative who shall not be related to or affiliated with Portal or the Company.

#### (h) Termination of Representative

The services of a Representative may be terminated at any time by the affirmative vote of Holders holding a majority of the Notes, measured by the outstanding

18

principal amount with respect to each such Note, but only if they simultaneously appoint a replacement Representative.

#### 13.4. Remedies

Upon the occurrence of an Event of Default, the Holders shall be entitled to any remedy that may be available by law and as set forth in the Note itself. However, the Representative shall not, without the affirmative written consent of a Majority, exercise the remedy set forth in section 6.2 of the Notes (an “Acceleration”)

#### 13.5. Payments Deemed Held in Trust

Any Holder who receives a payment on a Note while an Event of Default remains in effect with respect to such Note in excess of the amount such Holder should have received shall be deemed to be holding such excess in trust for the benefit of other Holders and the Representative, and shall return such excess on demand.

#### 13.6. Forbearance Not a Waiver

If a Holder or the Representative delays in exercising or fails to exercise any of its rights under a Note or this Revenue Sharing Agreement, that delay or failure shall not constitute a waiver of any rights or of any breach or default. No waiver by a Holder or the Representative shall be effective unless the waiver is expressly stated in a writing signed by the Holder or the Representative, as the case may be.

#### 13.7. Termination of Default

An Event of Default shall be deemed to have been terminated upon the earliest to occur of:

13.7.1. The date the Representative and the Company enter into a settlement of all claims; or

13.7.2. If an Acceleration has not been authorized by the Holders, the date the Company has paid (i) to the Holders, all payments due through such date; and (ii) to the Representative, all the fees and expenses described in section 12.3.2(f); or

13.7.3. If an Acceleration has been authorized by the Holders, the date the Company has paid (i) to the Holders all payments due through such date; and (ii) to the Representative, all the expenses described in section 12.3.2(f); but only if a Majority agrees to annul the demand for Acceleration.

#### 13.8 Waiver of Past Defaults

A Majority may, by notice to the Representative, waive an existing Event of Default and its consequence. When an Event of Default is waived, it is deemed cured, but no such waiver shall extend to any subsequent or other Event of Default or impair any consequent right.

### 14. Miscellaneous

#### 14.1. Electronic Delivery

All communications from the Company to Holders, including but not limited to all tax forms, shall be via electronic delivery.

#### 14.2. Notice

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Any notice or document required or permitted to be given under this Revenue Sharing Agreement may be given by a party or by its legal counsel and shall be deemed to be given on the date transmitted by overnight delivery service or by email with written confirmation of receipt, to the address of the Company set forth in the Company's Form C, to the address of a Holder provided by the Holder at the Site, or such other address as a party may designated by notice complying with this section.

#### 14.3. Payments

All payments of principal and interest on the Notes will be made in U.S. dollars as Automated Clearing House (ACH) deposits into an account designated by each Holder at the Site.

#### 14.4. Governing Law

This Revenue Sharing Agreement and each Note shall be governed by the internal laws of Massachusetts without giving effect to the principles of conflicts of laws. Each Holder hereby (i) consents to the personal jurisdiction of the Massachusetts courts or the Federal courts located in or most geographically convenient to Essex County, Massachusetts, (ii) agrees that all disputes arising from this Agreement shall be prosecuted in such courts, (iii) agrees that any such court shall have in personam jurisdiction over such Holder, (iv) consents to service of process by notice sent by regular mail to the address used by the Holder to register at the Site and/or by any means authorized by Massachusetts law, and (v) if such Holder is not otherwise subject to service of process in Massachusetts, agrees to appoint and maintain an agent in Massachusetts to accept service, and to notify the Company of the name and address of such agent.

#### 14.5. Titles and Captions

All article, section and paragraph titles and captions contained in this Revenue Sharing Agreement (like 'Titles and Captions' in this section) are for convenience only and are not deemed a part of the context hereof.

#### 14.6. Days

Unless specified otherwise, any period of days mandated under a Note or this Revenue Sharing Agreement shall be determined by reference to calendar days, not business days, except that any payments, notices, or other performance falling due on a Saturday, Sunday, or federal government holiday shall be considered timely if paid, given, or performed on the next succeeding business day.

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**Attachment 5:** `cactusblossom_busplan.pdf`

![img-0.jpeg](img-0.jpeg)

# Business Plan

## Cactus Blossom Cantina, LLC

VT business ID# 0415712

(2/20/23)

### 1. Executive Summary

- Cactus Blossoms Cantina seeks to bring Arizona cuisine to the Green Mountain State. With a passion for innovation and creativity, our small team of chefs and designers are spearheading a post-pandemic reawakening of restaurant culture. We have planned flexibility and accessibility into our business model. By keeping our finger on the pulse of the local and global market, we will be prepared to fluctuate our menu, hours and service style to suit the needs of the community without compromising our quality or passion.

### 2. Concept & Location

- Cactus Blossom Cantina represents a new wave of Southwestern cuisine. Between the California coast and the great state of Texas sits a true melting pot of American and global culture. Drawing from primarily Latin-American flavors with a dash of Mediterranean and Asian influences, we will showcase some of our favorite interpretations of nouveau American fusion.

○ 712 Main St. is a few blocks east of the heart of downtown Bennington and a short walk away from street-side and lot parking. The front doors of the two-story building are an arms reach from the Main street sidewalk and buffered by a generous wind break.
■ Formerly Donovan's sports bar, the well maintained interior can comfortably seat 40 patrons; between its 11 bar seats, 5 central bar seats, large 6-person booth, three bar height tables that seat 4, and one banquet table in the former pool table room will seat 6.
■ The long bar top houses 12 tap lines that run down to a large walk-in cooler in the basement. A very small but functional kitchen has been added onto the left side of the bar, designed to be run by the Bartender during service. Two clean restrooms are accessible in the back of the building.
■ The back exit opens to a small wood deck with a ramp for ADA access and inventory loading. A mid-sized storage shed sits off to the right of the decking and stairs leading to the second story apartment are to the left. The small back gravel lot is large enough for private parking, receiving inventory, and limited patio seating during agreeable weather.
■ The second story apartment will allow us to live and work on site and maximize our product sales while minimizing staffing needs.

*See attached walk-through video

# 3. Market Conditions & Competition

○ The benefit of being in a small town is that neighboring businesses help to prop each other up, not tear each other down. We intend to carry that spirit into this venture by sourcing the bulk of our wine, beer and proteins from Vermont. By coordinating with the local breweries we can help to bolster their sales and our own at the same time.
○ Most of the local restaurants, bars and tap houses have at least one or two Mexican inspired menu items indicating a strong market for this style of cuisine. There are three restaurants in town that serve primarily SW style food : Chili's, Avocado Pit, and Harvest Brewing. Our concept is distinctly different from these locations due to our Chef curated menu, from-scratch kitchen and vibrant Cantina atmosphere.

# 4. Menu & Service

○ Cactus Blossom's food will feature a seasonally rotating selection of both familiar and unique ingredients sourced from local and regional suppliers. The menu will consist of Tapas-style small plates with bold flavors rooted in Southwestern cuisine. Each plate has been set to cost $7, with ingredient cost in the range of $1-$2.
○ The Cantina bar will serve a curated selection of local beers and wines in the $6-$9 range, as well as festive Michelada beer cocktails and Sangrias that complement our signature dishes at $12.
○ Plates will be smaller than a traditional restaurant entree with the intent that each

customer could affordably order several dishes and additional beverages during their visit. Conservatively anticipating each seat ordering 1.5 dishes and 1.5 drinks, this brings the total per-seat expenditure to $26 (the industry average as per the National Restaurant Association).

○ The slim profile of the lobby will allow for the bulk of food service to happen at the extensive bar top, which is connected directly to the kitchen. All tables will be visible to the bartender/host, and service will be no more than a few steps outside the bar/kitchen area.

5. Management

○ Our doors will be open 7 days a week, from 5:30 PM to 11:30 PM in order to serve members of the community that work and live alternative hours. Chef owners will be living on site and responsible for food preparation and administration during the daytime hours to ensure quality and speed of service in the evening hours. Eventual morning prep staff may be hired should sales volumes increase sufficiently. Owners will be on site and on call during evening service inorder to assist if needed. A minimum of one Bartender will be required to operate the bar/kitchen and serve. Busy nights may call for up to 4 persons to tend the bar, cook, clean and serve.
○ Team
■ Christina Brogan - Executive Chef
● Chef Christina was educated in classic, French fine dining techniques at the acclaimed Arizona Culinary Institute. After graduating, she trained under celebrity Chef Beau MacMillan at his restaurant Elements. She later moved on to become the Executive Chef at Pomegranate Cafe where she had the privilege of working closely with small farms to create an extensive rotation of seasonal vegan recipes. The later half of her career has been focused on catering both large and small scale fine dining events including galas, weddings, grand openings, business meetings, bachelorette and birthday parties.
● Christina's responsibilities include:
○ Menu development, preparation, quality and portion control, seasonal rotations and specials, and inventory management
■ TJ Cunanan - Operations Administrator
● Having cooked at and managed numerous vegan/vegetarian kitchens in the Phoenix area over many years, Chef TJ has an intricate knowledge of efficient kitchen flow and technical skill. Drawing on a diverse background and worldly experience, Chef TJ is able to conjure amazing dishes and fantastic flavors to impress even the staunchest critics.
● TJ's responsibilities include:
○ Manage the kitchen and bar during service hours, hire and

train new staff, update website, manage social media and customer outreach, acquire inventory when delivery is not possible, assist with menu prep and development

■ John Brogan - Operations Manager

- ● Owner of Foundation Drafting & Design since 2017, John brings an array of skills essential to the preparation and maintenance of the building and business.
- ● John's responsibilities include:
  - ○ Asses current property condition for vulnerabilities and future opportunities; 3D CAD model existing structure for space planning & cost estimating; budget, plan, and implement energy saving projects; design/build custom production line equipment
  - ○ Oversee facilities maintenance, accounts and finances; plan/permit expansions and events, manage marketing and merchandise

■ Professional Bartender - To be hired

- ● Our local professional bartenders will assist in creating unique beer and wine cocktails to pair with our seasonally rotating menu

6. Marketing & Sales

- ○ The majority of our marketing plan will be an investment in time, more so than financial resources. Being in a small town, we understand that reputation and word of mouth is going to be our biggest asset. We have taken time to meet with numerous local business owners to assess the typical marketing avenues and sales challenges in the community. Our next step will be to spend time speaking with students and staff from Bennington College and staff from SWVT Medical Center regarding bulk and recurring orders.
- ○ Bennington relies heavily on Facebook to spread information, ask questions and to advertise. We will use that avenue to showcase enticing food and drink specials and to generate interest before we open our doors. Our business card QR code will link potential new customers to our Cactus Blossom Cantina website, with beautiful pictures of our menu and current specials. We will manage our Google search results so that our hours, links and menu are up-to-date. ○ CactusBlossomCantina.com has been purchased and professionally designed locally by Greg Urban and his team at UrbanPressed.com. The website features a full color menu with ordering, to-go/catering information, and a calendar for upcoming events.
- ○ Organization and scheduling of projects and shifts, as well as planning for events and catering, will be handled by Dubsado software, which we already own. ○ Part of our passive marketing plan is to be open when other businesses are closed, notably in the late evening and each day of the week, sales permitting. Living on site allows us to set our own hours based on what the customers want and to adapt to meet changing needs.

- ○ We have partnered with TouchBistro, a POS system designed to facilitate customer loyalty and restaurant success. The software will allow us to closely track sales and inventory and easily advertise to repeat diners. TouchBistro will have a full recipe profile for each menu item so that diners with allergies or dietary restrictions can order with certainty.
- ○ With two ticket printers, two mini tablets and two IPADS, we have hardware to support double the customer flow that we anticipate. The internal server and credit card processing technology continue to function even during times of internet and power outages. With assigned seat numbers, split tickets will be easy to accommodate and food will be delivered to the right person every time. 7. Financials
  - ○ See attached quarterly 3-year Income and Cash Flow Statements
  - ○ Key Assumptions
    - ■ 5 STAFF MEMBERS ON SHIFT (3 MANAGER, 2 HOURLY FTE)
    - ■ 6 HOUR SERVICE TIME (5PM - 11PM)
    - ■ 8 HOUR/DAY HOURLY EMPLOYEE SHIFTS
    - ■ 30 DAYS OPEN PER MONTH
    - ■ 40 SEATS BAR AND LOBBY
    - ■ ADDITIONAL OUTSIDE SEATING NOT FACTORED
    - ■ EACH SEAT WILL AVERAGE \$14 IN FOOD
    - ■ FOOD SALES AT 60%
    - ■ EACH SEAT WILL AVERAGE \$12 IN DRINKS
    - ■ BEER AND WINE SALES AT 40%
    - ■ CATERING & TO-GO AT 5% OF FOOD SALES
    - ■ MORTGAGE PAYMENT AT \$2000/MO AT 7%
    - ■ EXPENSES AND UTILITIES BASED ON THE NATIONAL RESTAURANT ASSOCIATION 2021 INDUSTRY, NATIONAL, AND STATE AVERAGES
      - ● <https://restaurant.org/research-and-media/research/industry-statistics/>
      - ■ SALES OF \$36,000/MONTH BASED ON NATIONAL AVERAGE FOR A COMPARABLE BUSINESS PLAN/SIZE
    - ■ SEASONAL TRENDS IN SALES VOLUME WILL FOLLOW HISTORIC DATA CURVE
    - ■ SALES CURVE FOR THE FIRST YEAR REDUCED BY 25% DUE TO BEING A NEW BUSINESS
      - ■ \$15,000 AVERAGE TOTAL MONTHLY FINANCIAL OBLIGATION
    - ■ 20 SEATS AT \$26 PER SEAT AVERAGE OVER 30 DAYS TO MEET THE ABOVE MINIMUM OBLIGATION8. Permits, licenses, & insurance- ○ Department of Health - Food and Lodging Program
  - ■ Restaurant III (51-100 seats) - \$300 annual
  - ■ Display license and health inspection report
    - ● (30 days prior to open)
- ○ Department of Liquor Control
  - ■ Class 1 Liquor License - \$230,
  - ■ & DLL certified alcohol service training - every 2 years
  - ■ Display license and mandatory signage

- (2 to 6 weeks)
- Department of Environmental Conservation
  - Wastewater Permit
  - ~Update ownership and reapply for any plumbing renovations or seating increase
    - (up to 90 days)
- Department of Taxes
  - Payroll, property and sales taxes
- Business Property Insurance
  - The Richards Group -
- Workers Compensation
  - The Richards Group -

**Attachment 6:** `cactusblossom_vidtrans.pdf`

0:01

all right this is donovan's

0:05

it is a bar

0:06

[Music]

0:12

so the owner's been closed since covid

0:15

he has made several upgrades

0:18

while he's been closed such as

0:20

refinishing these hardwood floors

0:24

there's some other great upgrades down

0:26

in the basement that you'll see

0:29

over here is the one-man kitchen

0:36

so it is designed to be fully functional

0:38

for just

0:40

one person

0:42

so if you have a bartender

0:46

working

0:48

back here

0:50

they can pop into the kitchen

0:53

behind closed doors and have

0:57

everything that they needed

1:00

for serving the food that they served so

1:02

there's a freezer here

1:09

there's a refrigerator

1:12

unit here

1:14

with a little prep surface

1:18

and space to put your toppings and

1:20

whatnot

1:22

and over here

1:24

is a new

1:25

auto fryer

1:28

so these are the foods that they served

1:31

things like

1:32

curly fries and onion rings and fried

1:34

pickles

1:38

drop into there

1:40

set the timer and off you go

1:44

one for each side easy peasy

1:49

close this just so you can see the rest

1:51

of the space so the hardwood floor runs

1:53

through here there's another

1:56

window

1:57

here in the front

2:04

okay

2:05

just let some of that light up

2:08

you can see the exhaust from the fryer

2:11

[Music]

2:12

over here there's another small

2:15

storage and workstation

2:19

microwave up high

2:21

it's not completely closed off it is

2:23

just the door here out to the bar and

2:26

then the bar area

2:28

behind the saloon doors

2:33

all right

2:37

so here are all the controls for the

2:40

lights

2:41

of course it is a bar kind of pub area

2:43

so there's several televisions

2:45

one in each corner of the bar

2:48

and then two large tvs across the way

2:54

so it is super clean in here i will

2:56

definitely give him that

2:58

i'm impressed with the cleanliness

3:01

they've got their

3:03

storage kind of hidden back here just by

3:06

some

3:07

drapes for easy access

3:09  
it's all mirrored  
3:11  
back here  
3:12  
and then there's more coolers  
3:16  
you know everything's just  
3:18  
turned off right now to keep the cost  
3:20  
low since he's not open  
3:23  
but all super nice and clean  
3:25  
and then you've got your ice  
3:28  
there with your  
3:30  
well drinks um sink i should go this way  
3:34  
so the  
3:35  
sun's not reflecting back  
3:39  
so  
3:40  
the bar itself  
3:45  
the tap system  
3:48  
that's part of the upgrade that you'll  
3:49  
see down in the basement with a walk-in  
3:51  
cooler  
3:52  
there's like a glycol system to keep  
3:54  
everything cold cold  
3:57  
so there's  
3:58  
a couple of coolers here he's got his

4:00  
glasses just stored in this one  
4:03  
and then  
4:05  
some other chilled drinks there another  
4:07  
ice machine here  
4:10  
and then again just more storage spaces  
4:18  
so there are  
4:20  
kind of these beams that kind of make a  
4:22  
grid pattern up here on the ceiling  
4:24  
which is nice to add some kind of  
4:26  
architectural detail  
4:28  
and then  
4:30  
in the middle dividing  
4:32  
the bar from  
4:34  
the seating area they do have  
4:37  
this kind of  
4:39  
you know industrial pipe  
4:41  
system so you've got a place for your  
4:43  
feet  
4:44  
uh and then this just all holds up this  
4:47  
other  
4:48  
drink holder essentially  
4:51  
so over here

4:53  
they've got room for  
4:55  
more tables than what they have  
4:57  
obviously they could fit more in here  
4:59  
but in the front  
5:00  
there is a whole built-in banquet  
5:07  
the actual  
5:08  
kind of front door is set up as a double  
5:10  
door so you get that wind break which is  
5:13  
really important in vermont in the  
5:14  
winter time  
5:19  
so coming in from  
5:22  
the front this is what people see they  
5:24  
walk in this is that kitchen employee  
5:26  
only area  
5:30  
so there's a  
5:31  
wainscoting  
5:34  
and a chair rail detail  
5:37  
there are surround sound speakers and  
5:40  
another cable outlet there if you want  
5:42  
to put a third tv up  
5:44  
they have a touch tunes machine my guess  
5:46  
is that this is not included it's

5:48  
probably a rented system but i'd have to  
5:49  
figure that out  
5:51  
you plug in your  
5:53  
iphone or connect it somehow through  
5:55  
bluetooth  
5:56  
and then again all part of the  
5:58  
electrical  
5:59  
and stereo system there's a speaker  
6:02  
mounted up there  
6:06  
all right so then in the back there's  
6:08  
two restrooms  
6:10  
they split them up as ladies and  
6:11  
gentlemen  
6:13  
so we transition from a wood  
6:16  
to the carpet  
6:18  
to a tile  
6:21  
wayne's coating in here  
6:23  
it is a one person occupancy  
6:26  
nice wood wainscoting  
6:28  
toilet urinal  
6:31  
looks kind of like a chalkboard paint on  
6:33  
the walls here i'm guessing that's why

6:35

it's sort of

6:36

got that

6:38

weight down look and then just a corner

6:40

sink there's actually

6:43

no mirror in here which i find really

6:45

funny

6:49

and then right after that on the same

6:52

side is the ladies

6:54

room again just a single occupancy this

6:56

one has

6:57

a sink with a mirror

7:02

it's not as dark as the men's room

7:04

[Music]

7:06

okay

7:07

so back here in the pool table

7:10

zone

7:11

there is a wainscoting ceiling with some

7:14

recessed lights try to go this way so

7:17

you don't get so much glare

7:23

so we've got the basement hatch door

7:25

open just so that i can walk right down

7:26

there but i wanted to show you

7:29

this

7:30

upstairs first

7:32

so this is the back door

7:38

so just sort of giving you the quick

7:39

view i will start the next video from

7:41

right there

7:42

but before i go out i'm gonna go down

7:46

so to the basement we go

7:54

stairs are steep but

7:58

that way they don't take up a lot of

7:59

room all right so in the basement tons

8:01

of storage all built-in wood

8:03

shelving

8:06

concrete floor

8:09

there was a brand new boiler this was

8:11

installed last year

8:14

it's a wheel mclean gold boiler

8:17

and vermont heat is critically important

8:20

so that's a important upgrade that

8:22

they've done you can see all the shiny

8:23

new copper pipes

8:25

there's also an air conditioning system

8:27  
here of course that's important for the  
8:28  
summertime  
8:30  
for restaurant goers  
8:32  
a couple different zones for heat  
8:34  
there  
8:36  
you're on town water in town sewer so  
8:38  
there's the septic line going out  
8:41  
behind this board i'm sorry this is in  
8:44  
the way but  
8:45  
i can't really move it um there's the  
8:47  
oil tank  
8:49  
the vast majority of our homes and  
8:50  
businesses are heated by oil here in  
8:52  
vermont so the fill pipes are outside  
8:55  
the delivery driver would just park in  
8:56  
the driveway and fill it up from outside  
9:01  
and then  
9:02  
before i show you the cooler i want to  
9:04  
show you  
9:05  
the electrical which is all the way in  
9:07  
this front corner  
9:13  
so

9:14

nice

9:16

panel

9:17

definitely looks to be a 200 amp

9:20

panel to me i'm gonna try to take a step

9:22

back and take a photograph for you

9:25

uh all wired in through cable

9:27

uh comcast high speed internet

9:29

uh so all of that is on one unit so both

9:32

your business and your home would be on

9:34

one bill

9:37

so you can see the poured concrete

9:38

foundation

9:39

you know look beyond the clutter and

9:41

just look at the foundation

9:43

the actual framing is impressive

9:46

back in the day when two by fours were

9:48

actually two inches by four inches and

9:51

two by sixes were two inches by six

9:53

inches

9:54

so that's all really good smoke

9:55

detectors

9:57

nice clean wiring

9:59

that's really important

10:03

so here is the walk-in cooler this whole

10:06

unit

10:07

here

10:15

so it's currently just set up for the

10:17

kegs

10:20

since it's a bar but if you were using

10:22

this as a restaurant and just wanted it

10:24

as a walk-in cooler for food

10:26

primarily then

10:28

you could put shelving in and use it for

10:30

that instead

10:32

all right so that is the basement

10:34

very good ceiling height i would say

10:36

this is a good um

10:39

eight and a half feet tall most likely

10:41

super sturdy beams

10:43

nothing seems out of place down here

**Attachment 7:** `cactusblossom_pageview.pdf`

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Cactus Blossom Cantina

Southwestern Gastropub

712 Main St.

Bennington, VT 05201

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Data Room

Discussion

This is a preview. It will become public when you start accepting investment.

Early Investor Bonus: The investment multiple is increased to 1.6x for the next $45,000 invested.

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THE PITCH

Cactus Blossom Cantina is seeking investment to finalize buildout and open Cactus Blossom Cantina for the greater Bennington community.

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THE TEAM

Christina Brogan

Executive Chef

Christina Brogan - Executive Chef

Chef Christina was educated in classic, French fine dining

techniques at the acclaimed Arizona Culinary Institute. After

graduating, she trained under celebrity Chef Beau MacMillan at

his restaurant Elements. She later moved on to become the

Executive Chef at Pomegranate Cafe where she had the privilege

of working closely with small farms to create an extensive rotation

of seasonal vegan recipes. The later half of her career has been

focused on catering both large and small scale fine dining events

including galas, weddings, grand openings, business meetings,

bachelorette and birthday parties.

Christina's role at Cactus Blossom will include:

Seasonal menu development, streamlining workflow and minimizing waste, food preparation and quality control, service back up and oversight.

TJ Cunanan

Operations Administrator

TJ Cunanan - Operations Administrator

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Having cooked at and managed numerous vegan/vegetarian

kitchens in the Phoenix area over many years, Chef TJ has an

intricate knowledge of efficient kitchen flow and technical skill.

Drawing on a diverse background and worldly experience, Chef TJ

is able to conjure amazing dishes and fantastic flavors to impress

even the staunchest critics.

TJ's role at Cactus Blossom will include:

☐ Manage the kitchen and bar during service hours, hire and

train new staff, update website, manage social media and

customer outreach, assist with menu prep and development

John Brogan

Operations Manager

John Brogan - Operations Manager

Owner of Foundation Drafting & Design since 2017, John brings

an array of skills essential to the preparation and maintenance of

the building and business.

John's role at Cactus Blossom will include:

Assessing current property condition for vulnerabilities and

future opportunities, oversee facilities maintenance, accounts and finances,

plan/permit expansions and events, manage marketing

and merchandise.

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OUR MISSION

To curate a seasonal fusion of Southwestern American cuisine with quality New England ingredients & to create a new hub for under-served members of the community.

All of our dishes will be scratch-made by experienced Arizona chefs

The Cantina bar will feature a selection of some of the best local beer, wine, cider and mead

Our operating hours and menu are designed to grow and improve with community input

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OUR STORY

Cactus Blossom Cantina is the dream of two Arizona raised chefs. Seeking respite from the growing instability along our western coasts, we put everything on the line to move our families out to the beautiful Green Mountain State.

Post-pandemic work culture has left us dissatisfied with corporate employment

Having found an amazing local realtor and a promising location, we started the process of selling our home in Arizona and buying our new business in VT

We quickly learned that the barriers to entry are even more than we predicted

Unable to bridge the cost between the asking price and appraisal we had to walk from our first location and rent a place to live in the mean time After finding a new location and restructuring our business plan, we are back on track to close on our new location

The very drawn out process of re-homing our family and navigating the multiple levels of bureaucracy has drained our initial recourses and left us

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short of the needed starting capital

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LOCATION

Located on the West side of Main St., just a short drive from the heart of downtown Bennington Vermont. Found in the southwestern corner of the Green Mountain State, Bennington county shares a boarder with New York and Massachusetts.

Vermont is predicted to be one of the up-coming hotspot for climate refugees

Part of the main street alliance, we will have a unique opportunity to cross-promote with other Main St. business

Bennington is the hub for the county in terms of employment, shopping and medical needs

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THE SPACE

The former Donovan's sports bar was a profitable and beloved spot for many locals. Offering 40+ seats, 12 beer taps and a compact "one-man" kitchen, this space offers the infrastructure to support a quick service menu and a robust bar.

Meticulously maintained by its former owner, the equipment and facilities are walk-in ready

Second story living space will allow owners maximum involvement while maintaining family life balance

Back patio and unfinished front 1/3 of the upper level offer opportunities for expanded dining area

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INITIAL WALK-THROUGH - MAIN FLOOR

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00:00

-10:48

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Our realtor, Jenifer Hoffman, filmed the entire property for us while we were wrapping up the sale of our home in Mesa, AZ

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TARGET MARKET

Bennington VT hosts a population of nearly 16,000. Approximately 30% are between the age of 20 and 49 and represent the bulk of our target market. Younger generation diners and an increasingly diverse workforce are looking for new, exciting dining experiences.

The health care, education, social, and governmental services sector of the economy represent over 5,000 jobs in the local area

The local community relies heavily on Facebook to advertise and communicate, as such, an involved social media presence is a must for attracting new and return customers

Word of mouth reputation is the back-bone of small town advertising. The novelty will bring in our first wave of customers, but it is up to us to wow them and keep them coming back

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TRACTION & VALIDATION

We have spent the last six months, on the ground in Vermont, surveying the local market place and connecting with the local business owners and restaurant goers. The slow pace of small town business openings has been out paced by post-pandemic restaurant closures and the market is ripe for a new wave of more sustainable food establishments.

A notoriously pro-small business state, residents and tourists alike prefer spending money at local restaurants

With a strong sentiment for the old Rattle Snake Café, locals are hungry for Latin-American flavors

Having the support and assistance from a number of local entities including the Vermont Economic Development Authority, the Vermont Small Business Development Center, the Bank of Bennington and several of the local small business owners, has allowed us to more thoroughly develop a business plan that is viable for the community

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BUSINESS MODEL

Cactus Blossom's primary source of revenue will be generated from dine-in sales, followed by pick-up orders and catering.

Taking advantage of our "one-man" kitchen, our team has designed a high-quality, quick-service menu

Unlike most of the local business and restaurants, our doors will be open 7 days a week and will stay open as late as midnight

Utilizing the full scope of the kitchen and bar for morning food preparation allows for consistent, speedy service during evening hours

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# INTENDED USE OF FUNDS

In order to move forward with our venture, we need to acquire funding for the remaining down payment balance, closing costs and working capitol.

The purchase of a physical location with attached residential space allows our team the stability needed to keep revenue flowing during unstable times

This brick and mortar business and home can serve as the head quarters for: On or off site catering, personal chef services, market production, event hosting, classes and demonstrations, or rental space for small catering businesses or food truck operators

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# PORTRAIT OF THE CHEF'S WORK

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Data Room

Intended Use of Funds

Target Raise

Maximum Raise

Working Capital $14,000

Closing Costs $16,952

Remaining down payment $7,000

Buffer $4,010

Mainvest Compensation $3,038

Total $45,000

Financial Forecasts

Year 1 Year 2 Year 3 Year 4 Year 5

Gross Sales $428,550 $509,116 $580,433 $609,455 $627,738

Cost of Goods Sold $133,279 $158,335 $180,514 $189,539 $195,224

Gross Profit $295,271 $350,781 $399,919 $419,916 $432,514

# EXPENSES

Opex + Debt $237,100 $246,790 $260,508 $255,329 $261,712

Operating Profit $58,171 $103,991 $139,411 $164,587 $170,802

This information is provided by Cactus Blossom Cantina. Mainvest never predicts or projects performance, and has not reviewed or audited this financial forecast. Please see below for additional risk disclosures.

Documents

Investor Agreement

2022 Balance Sheet

2022 Income Statement

Cactus Blossom Cantina - Business Plan (03-08-23).pdf

TownLoan.pdf

712 Main Street, Bennington VT - Property Appraisal.pdf

CactusBlossom-WebsiteMockUp.jpg

Investment Round Status

Target Raise $45,000

Maximum Raise $124,000

Amount Invested $0

Investors 0

Investment Round Ends November 10th, 2022

Summary of Terms

Legal Business Name Cactus Blossom Cantina, LLC

Investment Structure Revenue Sharing Note

Early Investor Bonus

Investment multiple for the first $45,000 invested

1.6x

Investment Multiple 1.5x

Business's Revenue Share 1.5%-4.1%

Minimum Investment Amount $100

Repayment Schedule Quarterly

Securitization None

Maturity Date March 31st, 2031

Financial Condition

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Due to dwindling finances, our project will need the coordination of several entities to move forward:

Bank of Bennington - Primary loan holder working in conjunction with the Vermont Economic Development Authority who will match our down payment of 10% for a total of $62,000

Total real-estate cost post appraisal is $310,000

Town of Bennington will cover a loan of $40,000 to purchase the equipment being sold with the building

Mainvest investors to help cover the additional $40,000 needed to cover down payment, closing costs and working capital

$10,000 + has been invested in the systems and technologies needed to operate our restaurant

A $10,000 deposit is being held by the B.O.B. and an additional $14,000 has been set aside for additional down payment.

Risk Factors

You Might Lose Your Money

When you buy a certificate of deposit from a bank, the Federal government (through the FDIC) guarantees you will get your money back. Buying a Note is not like that at all. The ability of Cactus Blossom Cantina to make the payments you expect, and ultimately to give you your money back, depends on a number of factors, including many beyond our control.

Limited Services

Cactus Blossom Cantina operates with a very limited scope, offering only particular services to potential clients, making them vulnerable to changes in customer preferences.

Lack of Accounting Controls

Larger companies typically have in place strict accounting controls. Smaller companies typically lack these controls, exposing themselves to additional risk.

Competition

The market in which we operate is highly competitive and could become increasingly competitive with new entrants in the market. Cactus Blossom Cantina competes with many other businesses, both large and small, on the basis of quality, price, location, and customer experience. Changes in customer preference away from Cactus Blossom Cantina's core business or the inability to compete successfully against the with other competitors could negatively affect Cactus Blossom Cantina's financial performance.

Reliance on Management

As a securities holder, you will not be able to participate in Cactus Blossom Cantina's management or vote on and/or influence any managerial decisions regarding Cactus Blossom Cantina. Furthermore, if the founders or other key personnel of Cactus Blossom Cantina were to leave Cactus Blossom Cantina or become unable to work, Cactus Blossom Cantina (and your investment) could suffer substantially.

Financial Forecasts Risks

The financial forecasts provided by us herein are reasonable forecasts by us based upon assumption of stable economic conditions and other various assumptions regarding operations. The validity and accuracy of these assumptions will depend in large part on future events over which Cactus Blossom Cantina and the key persons will have no control. Changes in assumptions or their underlying facts could significantly affect the forecasts. To the extent that the assumed events do not occur, the outcome may vary significantly from the projected outcomes. Consequently, there can be no assurance that the actual operating results will correspond to the forecasts provided herein. Additionally, Cactus Blossom Cantina is a newly established entity and therefore has no operating history from which forecasts could be projected with.

Inability to Sell Your Investment

The law prohibits you from selling your securities (except in certain very limited circumstances) for 12 months after you acquire them. Even after that one-year period, a host of Federal and State securities laws may limit or restrict your ability to sell your securities. Even if you are permitted to sell, you will likely have difficulty finding a buyer because there will be no established market. Given these factors, you should be prepared to hold your investment for its full term.

The Company Might Need More Capital

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Cactus Blossom Cantina might need to raise more capital in the future to fund/expand operations, buy property and equipment, hire new team members, market its services, pay overhead and general administrative expenses, or a variety of other reasons. There is no assurance that additional capital will be available when needed, or that it will be available on terms that are not adverse to your interests as an investor. If Cactus Blossom Cantina is unable to obtain additional funding when needed, it could be forced to delay its business plan or even cease operations altogether.

Changes in Economic Conditions Could Hurt Cactus Blossom Cantina

Factors like global or national economic recessions, changes in interest rates, changes in credit markets, changes in capital market conditions, declining employment, changes in real estate values, changes in tax policy, changes in political conditions, and wars and other crises, among other factors are unpredictable and could negatively affect Cactus Blossom Cantina's financial performance or ability to continue to operate. In the event Cactus Blossom Cantina ceases operations due to the foregoing factors, it can not guarantee that it will be able to resume operations or generate revenue in the future.

No Registration Under Securities Laws

The Notes will not be registered with the SEC or the securities regulator of any State. Hence, neither Cactus Blossom Cantina nor the Notes will be subject to the same degree of regulation and scrutiny as if they were registered.

Incomplete Offering Information

Title III does not require us to provide you with all the information that would be required in some other kinds of securities offerings, such as a public offering of shares (for example, publicly-traded firms must generally provide investors with quarterly and annual financial statements that have been audited by an independent accounting firm). Although Title III does require extensive information, it is possible that you would make a different decision if you had more information.

Lack of Ongoing Information

Cactus Blossom Cantina will be required to provide some information to investors for at least 12 months following the offering. However, this information is far more limited than the information that would be required of a publicly-reporting company; and Cactus Blossom Cantina is allowed to stop providing annual information in certain circumstances.

Uninsured Losses

Although Cactus Blossom Cantina will carry some insurance, Cactus Blossom Cantina may not carry enough insurance to protect against all risks to the business. Additionally, there are some kinds of risks that are very difficult or impossible to insure against, at least at a reasonable cost. Therefore, Cactus Blossom Cantina could incur an uninsured loss that could damage its business.

Changes in Laws

Changes in laws or regulations, including but not limited to zoning laws, environmental laws, tax laws, consumer protection laws, securities laws, antitrust laws, and health care laws, could negatively affect Cactus Blossom Cantina's financial performance or ability to continue to operate. Specifically, any additional regulation on the industry could significantly negatively affect the business.

Conflict of Interest With Companies and Their Management

In many ways, your interests and the interests of Cactus Blossom Cantina's management will coincide: you both want Cactus Blossom Cantina to be as successful as possible. However, your interests might be in conflict in other important areas, including these: You might want Cactus Blossom Cantina to act conservatively to make sure they are best equipped to repay the Note obligations, while Cactus Blossom Cantina might prefer to spend aggressively to invest in the business. You would like to keep the compensation of managers low, while managers want to make as much as they can.

Future Investors Might Have Superior Rights

If Cactus Blossom Cantina needs more capital in the future and takes on additional debt or other sources of financing, the new investors might have rights superior to yours. For example, they might have the right to be paid before you are, to receive larger distributions, to have a greater voice in management, or otherwise.

The Company is Not Subject to the Corporate Governance Requirements of the National Securities Exchanges

Any company whose securities are listed on a national stock exchange (for example, the New York Stock Exchange) is subject to a number of rules about corporate governance that are intended to protect investors. For example, the major U.S. stock exchanges require listed companies to have an audit committee made up entirely of independent members of the board of directors (i.e., directors with no material outside relationships with Cactus Blossom Cantina or management), which is responsible for monitoring Cactus Blossom Cantina's compliance with the law. Cactus Blossom Cantina will not be required to implement these and other investor protections.

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## You Have a Limited Upside

Notes include a maximum amount you can receive. You cannot receive more than that even if Cactus Blossom Cantina is significantly more successful than your initial expectations.

## You Do Have a Downside

Conversely, if Cactus Blossom Cantina fails to generate enough revenue, you could lose some or all of your money.

## Payments and Return Are Unpredictable

Because your payments are based on the revenue of Cactus Blossom Cantina, and the revenue of Cactus Blossom Cantina can go up or down (or even disappear altogether) unpredictably, it is impossible to predict how much you will receive and when. And because the payments are unpredictable, so is your ultimate return.

## The Notes Are Unsecured and Uninsured

The Notes are not secured by any collateral, nor are they guaranteed or insured by the FDIC or any other entity.

## Subordination

The Notes shall be subordinated to all indebtedness of Cactus Blossom Cantina to banks, commercial finance lenders, leasing and equipment financing institutions, and/or other institutions regularly engaged in the business of lending money.

## Lack of Guaranty

The Notes are not personally guaranteed by any of the founders or any other person.

## Limitation of Individual Rights in Event of Default

In the event of a default under the Notes, you will not be able to enforce your rights individually (for example, by bringing a lawsuit). Instead, a representative will be appointed according to the procedures set forth in the Note Indenture. It's possible that you will not like the representative, or that the representative will do things you believe are wrong or misguided. If an event of default has occurred and a representative has been appointed, all of the representative's reasonable expenses must be paid before any further payments are made with respect to the Notes.

## COVID-19 Impact

The ongoing COVID-19 pandemic may impact the Company's ability to generate revenue and/or continue operations. If operations are ceased due to COVID-19 restrictions, the Company can not guarantee that it will resume operations in the future.

## Limited Operating History

Cactus Blossom Cantina is a newly established entity and has no history for prospective investors to consider.

This information is provided by Cactus Blossom Cantina. Mainvest never predicts or projects performance, and has not reviewed or audited this information. For additional information, review the official Form C filing with the Securities and Exchange Commission on the EDGAR website. This is a preview. It will become public when you start accepting investment.

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### UNITED STATES SECURITIES AND EXCHANGE COMMISSION
**Washington, D.C. 20549**

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Name of Issuer:** Cactus Blossom Cantina, LLC

**Legal Status:** Limited Liability Company

**Jurisdiction of Incorporation/Organization:** VT

**Date of Organization:** 09-13-2022

**Physical Address:** 139 MAIN ST, BENNINGTON, VT, 05201

**Issuer Website:** http://cactusblossomcantina.com

**Is there a Co-Issuer?:** No

**Intermediary Name:** MainVest, Inc.

**Intermediary CIK:** 0001746059

**Intermediary File Number:** 007-00162

### Offering Information

**Compensation to Intermediary:** MainVest will be paid Four and one half (4.5) Percent of the amount of the Offering raised by "In-Network Users" of the Platform plus Nine (9) Percent of the amount of the Offering raised by all other investors.

**Financial Interest in Issuer:** MainVest, Inc. owns no interest in the Company, directly or indirectly, and will not acquire an interest as part of the Offering, nor is there any arrangement for MainVest, Inc. to acquire an interest.

**Type of Security Offered:** Debt

**Price per Security:** $1.00

**Method for Determining Price:** The Notes are being valued at their face value. We don't anticipate that we'll ever need to place a value on the Notes in the future.

**Target Offering Amount:** $45,000.00

**Oversubscription Accepted:** Yes

**Oversubscription Allocation Type:** First-come, first-served basis

**Maximum Offering Amount:** $124,000.00

**Deadline to Reach Target Amount:** 05-12-2023

### Annual Report Disclosure Requirements

**Current Number of Employees:** 3.00

**Total Assets (Most Recent Fiscal Year):** $0.00

**Total Assets (Prior Fiscal Year):** $0.00

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $0.00

**Cash & Cash Equivalents (Prior Fiscal Year):** $0.00

**Accounts Receivable (Most Recent Fiscal Year):** $0.00

**Accounts Receivable (Prior Fiscal Year):** $0.00

**Short-Term Debt (Most Recent Fiscal Year):** $0.00

**Short-Term Debt (Prior Fiscal Year):** $0.00

**Long-Term Debt (Most Recent Fiscal Year):** $0.00

**Long-Term Debt (Prior Fiscal Year):** $0.00

**Revenues/Sales (Most Recent Fiscal Year):** $0.00

**Revenues/Sales (Prior Fiscal Year):** $0.00

**Cost of Goods Sold (Most Recent Fiscal Year):** $0.00

**Cost of Goods Sold (Prior Fiscal Year):** $0.00

**Taxes Paid (Most Recent Fiscal Year):** $0.00

**Taxes Paid (Prior Fiscal Year):** $0.00

**Net Income (Most Recent Fiscal Year):** $0.00

**Net Income (Prior Fiscal Year):** $0.00

**Jurisdictions Offered:**

ALABAMA, ALASKA, ARIZONA, ARKANSAS, CALIFORNIA, COLORADO, CONNECTICUT, DELAWARE, DISTRICT OF COLUMBIA, FLORIDA, GEORGIA, HAWAII, IDAHO, ILLINOIS, INDIANA, IOWA, KANSAS, KENTUCKY, LOUISIANA, MAINE, MARYLAND, MASSACHUSETTS, MICHIGAN, MINNESOTA, MISSISSIPPI, MISSOURI, MONTANA, NEBRASKA, NEVADA, NEW HAMPSHIRE, NEW JERSEY, NEW MEXICO, NEW YORK, NORTH CAROLINA, NORTH DAKOTA, OHIO, OKLAHOMA, OREGON, PENNSYLVANIA, PR, RHODE ISLAND, SOUTH CAROLINA, SOUTH DAKOTA, TENNESSEE, TEXAS, UTAH, VERMONT, VIRGINIA, WASHINGTON, WEST VIRGINIA, WISCONSIN, WYOMING

### Signatures

**Issuer:** Cactus Blossom Cantina, LLC

**Signature:** Christina Brogan

**Title:** Owner and Founder

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**Signature:** Christina Brogan

**Title:** Owner and Founder

**Date:** 03-10-2023