Company: FGMCU
Filing Date: 2025-09-18
Form Type: S-4
Source: 0001104659-25-091249
Chunk: 235

Company: FG Merger II Corp.
Filing Date: 2025-09-18
Form: S-4
Chunk 235
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 actions) without the consent or approval of any of FGMC’s current stockholders, directors or management team. |

| ● | Limitations of Review. The FGMC board of directors considered that the FGMC management and FGMC’s financial and accounting advisors reviewed only certain materials in connection with their due diligence and valuation review of BOXABL. |

| ● | No Survival of Remedies for Breach of Representations, Warranties or Covenants of BOXABL. The FGMC board of directors considered that the terms of the Merger Agreement provide that FGMC will not have any surviving remedies against BOXABL or its equityholders after the Closing to recover for losses as a result of any inaccuracies or breaches of the BOXABL representations, warranties or covenants set forth in the Merger Agreement. As a result, FGMC stockholders could be adversely affected by, among other things, a decrease in the financial performance or worsening of financial condition of FGMC prior to the Closing, whether determined before or after the Closing, without any ability to reduce the number of shares to be issued in the Business Combination or recover for the amount of any damages. |

| ● | Litigation. The FGMC board of directors considered the possibility of litigation challenging the Business Combination or that an adverse judgment granting permanent injunctive relief could enjoin consummation of the Business Combination. |

| ● | Fees and Expenses. The FGMC board of directors considered the fees and expenses associated with completing the Business Combination. |

| ● | Diversion of Management. The FGMC board of directors considered the potential for diversion of BOXABL’s management and employee attention during the period prior to the completion of the Business Combination, and the potential negative effects thereof on BOXABL’s business. |

In addition to considering the factors described above, the FGMC board of directors also considered other factors, including, without limitation:

| ● | Interests of FGMC’s Directors and Executive Officers. FGMC’s directors, executive officers and advisors may have interests in the Business Combination as individuals that are in addition to, and may be different from, the interests of FGMC’s stockholders, including that certain of FGMC’s directors and executive officers hold membership interests in the Sponsor, and that a significant portion of the equity interests in FGMC held directly by FGMC’s directors, executive officers and advisors or indirectly (via the Sponsor) will only have value if a business combination is completed. However, FGMC’s board of directors concluded that the potentially disparate interests would be mitigated because