Company: FGMCU
Filing Date: 2025-01-21
Form Type: S-1/A
Source: 0001104659-25-004764
Chunk: 280

Company: FG Merger II Corp.
Filing Date: 2025-01-21
Form: S-1/A
Chunk 280
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 basis in its rights or possibly in other stock constructively owned by it.

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Satisfaction or Lapse of a Right.

The delivery of shares of common stock in satisfaction
of a right is not expected to be a taxable event. The U.S. holder’s tax basis in the share of our common stock received upon receipt
of shares with respect to a right generally should be an amount equal to the sum of the U.S. holder’s initial investment in the
right (i.e., the portion of the U.S. holder’s purchase price for each unit that is allocated to the right, as described above under
“— Allocation of Purchase Price and Characterization of a Unit”). The U.S. holder’s holding period for
the common stock received in satisfaction of the rights generally should begin on the date following receipt of shares (or possibly the
date of receipt) with respect to a right and should not include the period during which the U.S. holder held the rights. If a right is
allowed to lapse unexercised, a U.S. holder may be allowed to recognize a capital loss equal to such holder’s tax basis in the
right. The treatment of the rights is uncertain under U.S. federal income tax law. Prospective investors should consult their own tax
advisors with respect to the tax treatment of the rights.

Information Reporting and Backup Withholding.

In general, information reporting requirements
may apply to dividends paid to a U.S. holder and to the proceeds of the sale or other disposition of our units, shares of common stock
and rights, unless the U.S. holder is an exempt recipient. Backup withholding may apply to such payments if the U.S. holder fails to
provide a taxpayer identification number, a certification of exempt status or has been notified by the IRS that it is subject to backup
withholding (and such notification has not been withdrawn).

Backup withholding is not an additional tax. Any
amounts withheld under the backup withholding rules will be allowed as a credit against a U.S. holder’s U.S. federal
income tax liability and may entitle such holder to a refund, provided the required information is timely furnished to the IRS.

Non-U.S. Holders

This section applies to you if you are a “Non-U.S.
holder.” As used herein, the term “Non-U.S. holder” means a beneficial owner of our units, common stock or rights who
or that is for U.S. federal income tax