Company: FGMCU
Filing Date: 2025-01-21
Form Type: S-1/A
Source: 0001104659-25-004764
Chunk: 107

Company: FG Merger II Corp.
Filing Date: 2025-01-21
Form: S-1/A
Chunk 107
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| · | our immediate payment of all principal and accrued                                                                                  
 interest, if any, if the debt is payable on demand;                                                                                 |
| · | our inability to obtain necessary additional financing                                                                              
 if the debt contains covenants restricting our ability to obtain such financing while the debt is outstanding;                      |
| · | our inability to pay dividends on our common stock;                                                                                 |
| · | using a substantial portion of our cash flow to pay                                                                                 
 principal and interest on our debt, which will reduce the funds available for dividends on our common stock if declared, expenses,  
 capital expenditures, acquisitions and other general corporate purposes;                                                            |
| · | limitations on our flexibility in planning for and                                                                                  
 reacting to changes in our business and in the industry in which we operate;                                                        |
| · | increased vulnerability to adverse changes in general                                                                               
 economic, industry and competitive conditions and adverse changes in government regulation; and                                     |
| · | limitations on our ability to borrow additional amounts                                                                             
 for expenses, capital expenditures, acquisitions, debt service requirements, execution of our strategy and other purposes and other 
 disadvantages compared to our competitors who have less debt.                                                                       |

We may only be able to complete one business combination with the proceeds of this offering and the sale of the private placement securities, which will cause us to be solely dependent on a single business which may have a limited number of products or services. This lack of diversification may negatively impact our operations and profitability.

The
net proceeds from this offering and the sale of the private placement securities will provide
us with $81,141,500 (or $93,021,500 if the underwriters’ over-allotment option is exercised
in full) that we may use to complete our initial business combination.

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We may effectuate our initial business combination with a single target
business or multiple target businesses simultaneously or within a short period of time. However, we may not be able to effectuate our
initial business combination with more than one target business because of various factors, including the existence of complex accounting
issues and the requirement that we prepare and file pro formafinancial statements with the SEC that present operating results
and the financial condition of several target businesses as if they had been operated on a combined basis. By completing our initial
business combination with only a single entity, our lack of diversification may subject us to numerous economic, competitive and regulatory
developments. Further, we would not be able to diversify our operations or