Company: FGMCU
Filing Date: 2025-01-21
Form Type: S-1/A
Source: 0001104659-25-004764
Chunk: 118

Company: FG Merger II Corp.
Filing Date: 2025-01-21
Form: S-1/A
Chunk 118
---
 by the corporation during a taxable year, net of the aggregate fair market value
of certain new stock issuances by the repurchasing corporation during the same taxable year. The Biden administration has proposed increasing
the Excise Tax rate from 1% to 4%; however, it is unclear whether such a change will be enacted and, if enacted, how soon it could take
effect.

Because we are a Nevada corporation and our securities will trade
on Nasdaq following the date of this prospectus, we will be subject to the Excise Tax with respect to any redemptions (including redemptions
in connection with an extension vote or the initial business combination). Whether and to what extent we would be subject to the Excise
Tax in connection with a business combination, extension vote or otherwise would depend on a number of factors, including (i) the fair
market value of the redemptions and repurchases in connection with the business combination, extension vote or otherwise, (ii) the structure
of a business combination (including the timing of any domestication), (iii) the nature and amount of any “PIPE” or other
equity issuances in connection with a business combination (or otherwise issued not in connection with a business combination but issued
within the same taxable year of a business combination) and (iv) the content of final regulations and other additional guidance from
the U.S. Department of the Treasury (the “Treasury”). On June 28, 2024, the Treasury finalized certain of the proposed regulations
(those relating to procedures for reporting and paying the Excise Tax). The remaining regulations (largely relating to the computation
of the Excise Tax) remain in proposed form. The Treasury intends to finalize these proposed regulations at a later date and, until such
time, taxpayers may continue to rely on the proposed regulations.

Any Excise Tax that becomes payable as a result of any redemptions
of our common stock (or other shares into which such common stock may be converted) would be payable by us and not by the redeeming holder.
To the extent the Excise Tax is applicable, the amount of cash available to pay redemptions or to transfer to the target business in
connection with our initial business combination may be reduced, which could result in our inability to meet conditions in the agreement
relating to our initial business combination related to a minimum cash requirement, if any, or otherwise result in the shareholders of
the combined company (including any of our shareholders who