Company: FGMCU
Filing Date: 2025-01-21
Form Type: S-1/A
Source: 0001104659-25-004764
Chunk: 78

Company: FG Merger II Corp.
Filing Date: 2025-01-21
Form: S-1/A
Chunk 78
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 if the underwriter’s over-allotment option
is exercised in full), may only be invested in direct U. S. Treasury obligations having a maturity of 185 days or less, or in certain
money market funds which invest only in direct U.S. Treasury obligations. While short-term U.S. Treasury obligations currently yield
a positive rate of interest, they have briefly yielded negative interest rates in recent years. Central banks in Europe and Japan pursued
interest rates below zero in recent years, and the Open Market Committee of the Federal Reserve has not ruled out the possibility that
it may in the future adopt similar policies in the United States. In the event of very low or negative yields, the amount of interest
income (which we may withdraw to pay income taxes, if any) would be reduced. In the event that we are unable to complete our initial
business combination, our public stockholders are entitled to receive their pro- rata share of the proceeds held in the trust account,
plus any interest income. If the balance of the trust account is reduced below $80,800,000 (or $92,800,000 if the underwriter’s
over-allotment option is exercised in full) as a result of negative interest rates, the amount of funds in the trust account available
for distribution to our public stockholders may be reduced below $10.10 per share (or $10.087 per share if the underwriters exercise
their over-allotment option in full).

Subsequent to our completion of our initial business combination, we may be required to take write-downs or write-offs, restructuring and impairment or other charges that could have a significant negative effect on our financial condition, results of operations and the price of our securities, which could cause you to lose some or all of your investment.

Even if we conduct extensive due diligence on a target business with
which we combine, we cannot assure you that this diligence will identify all material issues that may be present with a particular target
business, that it would be possible to uncover all material issues through a customary amount of due diligence, or that factors outside
of the target business and outside of our control will not later arise. As a result of these factors, we may be forced to later write-down
or write-off assets, restructure our operations, or incur impairment or other charges that could result in our reporting losses. Even
if our due diligence successfully identifies certain risks, unexpected risks may arise and previously known risks may materialize in
a manner