Company: FGMCU
Filing Date: 2025-01-21
Form Type: S-1/A
Source: 0001104659-25-004764
Chunk: 119

Company: FG Merger II Corp.
Filing Date: 2025-01-21
Form: S-1/A
Chunk 119
---
 do not exercise their redemption rights in connection with the initial business
combination) to economically bear the impact of the Excise Tax. Consequently, the Excise Tax may make a transaction with us less appealing
to potential business combination targets. Finally, subject to certain exceptions, the Excise Tax should not apply in the event of our
complete liquidation.

<div align='center'>59</div>

In addition, the Excise Tax may make a transaction with us less appealing
to potential business combination targets, and thus, potentially hinder our ability to enter into and consummate an initial business
combination, particularly an initial business combination in which substantial PIPE issuances are not contemplated.

On December 27, 2022, the U.S. Department of Treasury released
Notice 2023-2, which provides taxpayers with interim guidance on the Excise Tax that may be relied upon until the IRS issues proposed
Treasury regulations on such matter. Furthermore, Notice 2023-2 includes as one of its many exceptions to the Excise Tax, a
distribution in complete liquidation of a “covered corporation” to which Section 331 of the Code applies (so long as
Section 332(a) of the Code also does not apply). Consequently, we would not expect the Excise Tax to apply if there is a complete
liquidation of our public shares under Section 331 of the Code. Nonetheless, we are not permitted to use the proceeds placed in
the trust account and the interest earned thereon to pay any excise taxes or any other similar fees or taxes in nature that may be imposed
on the company pursuant to any current, pending or future rules or laws, including without limitation any excise tax due imposed under
the Inflation Reduction Act on any redemptions or stock buybacks by our company.

Recent increases in inflation in the United States and elsewhere could make it more difficult for us to complete our initial business combination.

Recent increases in inflation in the United States and elsewhere
may lead to increased price volatility for publicly traded securities, including ours, or other national, regional or international economic
disruptions, any of which could make it more difficult for us to complete our initial business combination.

<div align='center'>Risks Relating to Our Securities</div>

Our sponsor paid an aggregate of $25,000 to cover certain of our offering costs in exchange for 2,300,000 founder shares, or approximately $0.01 per founder share and, accordingly, you will experience immediate and substantial dilution