Company: FGMCU
Filing Date: 2025-12-30
Form Type: S-4/A
Source: 0001104659-25-124947
Chunk: 241

Company: FG Merger II Corp.
Filing Date: 2025-12-30
Form: S-4/A
Chunk 241
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 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. On May 20, 2025 Maxim sent to FGMC and Loeb, the initial proposed transaction structure put together by Winston. 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. On May 22, 2025 Winston sent a revised transaction structure to Loeb. 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. The parties also discussed the terms of the lock-up as well support agreements customary in such a merger transaction. The lock-up terms for certain shares held by Sponsor, BOXABL management team, and certain shareholders of BOXABL were negotiated to materially remain consistent with the lock-up terms that the Sponsor was subject to pursuant to the agreement with the underwriters of FGMC’s initial public offering. The support agreements terms were also negotiated to remain consistent with terms customary to such a merger transaction, including Sponsor and BOXABL shareholders holding at least a majority of voting stock of BOXABL agreeing to enter into support agreements requiring each to vote in favor of the business combination. 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 pay for Maxim’s above detailed services |

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