Company: FGMCU
Filing Date: 2025-09-18
Form Type: S-4
Source: 0001104659-25-091249
Chunk: 226

Company: FG Merger II Corp.
Filing Date: 2025-09-18
Form: S-4
Chunk 226
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 was already a reporting company, that the breakup fee and dividend restriction would be reinserted in the updated LOI, and that FGMC was open to discussing BOXABL’s ability to take on new debt during the exclusivity engagement and deSPAC process. On May 13, 2025, FGMC sent Maxim an updated LOI that included the reinsertion of a $1 million breakup fee, clarified that the $3.5 billion BOXABL valuation was at $10.00 per share, and inserted a provision whereby BOXABL could not declare cash or other dividends or bonuses. On May 14, 2025, Maxim coordinated the site visit for May 15, 2025, between BOXABL and FGMC. On the morning of May 15, 2025 Larry Swets and Maxim met with the entire BOXABL management team and conducted a site visit at the BOXABL factory in Las Vegas to inspect its operations and discuss its business. That afternoon, a conference call was held among FGMC management, BOXABL management, Winston & Strawn and Loeb & Loeb LLP (“ Loeb”), counsel to FGMC. During this call the parties and their counsel discussed the structuring of the transaction walked through the finer transaction points in the letter of intent.

105

On May 21, 2025 Loeb and Winston held a conference call to discuss revisions to the structure of the transaction and a revised letter of intent to reflect, among other things, expense caps and recovery of attorneys’ fees for enforcement of the letter of intent. From May 24, 2025 through May 28, 2025, Loeb & Winston exchanged emails regarding a simplified transaction structure that would be expected to generate tax efficiencies for both parties. On June 6, 2025 a finalized letter of intent was executed. The Key terms of the final letter of intent included:

| ● | $3.5B BOXABL valuation |

| ● | Supermajority voting rights: Founders retain supermajority voting rights as long as they hold >25% of shares outstanding |

| ● | 12 month lock up for sponsor and company management team |

| ● | Carve out after 6 months, if stock is above $12 for any 20 trading days within any 30-trading day period |

| ● | Expenses: FGMC’s unpaid expenses capped at $2M (excluding deferred underwriting fees) |

| ● | BOXABL can use up to 50% of deferred underwriting fees to