Company: FGMCU
Filing Date: 2025-01-21
Form Type: S-1/A
Source: 0001104659-25-004764
Chunk: 294

Company: FG Merger II Corp.
Filing Date: 2025-01-21
Form: S-1/A
Chunk 294
---
 positions
created by short sales. Short sales involve the sale by the underwriters of a greater number of units than they are required to purchase
in the offering, and a short position represents the amount of such sales that have not been covered by subsequent purchases. A “covered
short position” is a short position that is not greater than the amount of additional units for which the underwriters’ option
described above may be exercised. The underwriters may cover any covered short position by either exercising their option to purchase
additional units or purchasing units in the open market. In determining the source of units to cover the covered short position, the
underwriters will consider, among other things, the price of units available for purchase in the open market as compared to the price
at which they may purchase additional units pursuant to the option described above. “Naked” short sales are any short sales
that create a short position greater than the amount of additional units for which the option described above may be exercised. The underwriters
must cover any such naked short position by purchasing units in the open market. A naked short position is more likely to be created
if the underwriters are concerned that there may be downward pressure on the price of the units in the open market after pricing that
could adversely affect investors who purchase in the offering. Stabilizing transactions consist of various bids for or purchases of units
made by the underwriters in the open market prior to the closing of the offering.

<div align='center'>151</div>

The underwriters may also impose a penalty bid. This occurs when a
particular underwriter repays to the underwriters a portion of the underwriting discount received by it because the representative has
repurchased units sold by or for the account of such underwriter in stabilizing or short covering transactions.

Purchases to cover a short position and stabilizing transactions,
as well as other purchases by the underwriters for their own accounts, may have the effect of preventing or retarding a decline in the
market price of the company’s units, and together with the imposition of the penalty bid, may stabilize, maintain or otherwise
affect the market price of the units. As a result, the price of the common stock may be higher than the price that otherwise might exist
in the open market. The underwriters are not required to engage in these activities and may end any of these activities at any time.
These transactions may be effected on NASDAQ in the over-the-counter market or otherwise.

European Economic Area