Company: FGMCU
Filing Date: 2025-12-30
Form Type: S-4/A
Source: 0001104659-25-124947
Chunk: 239

Company: FG Merger II Corp.
Filing Date: 2025-12-30
Form: S-4/A
Chunk 239
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-day exclusivity (for BOXABL only) |

| ● | No-minimum cash at closing |

| ● | Each party responsible for their own expenses |

| ● | Prohibition of issuance/transfer of securities during exclusivity period |

| ● | Prohibition of new debt issuances during exclusivity period |

| ● | $1M breakup fee if (a) BOXABL fails to comply with any terms in the letter, (b) BOXABL enters into a different merger transaction, (c) BOXABL fails to obtain approval, and (d) BOXABL fails to comply with DD requirement |

| ● | 2 FGMC representatives on the BOD |

The letter of intent included a $3.5 billion valuation for BOXABL. Beginning in June 2024, BOXABL conducted an offering up to 88,095,238 shares of non-voting Series A-3 Preferred Stock, up to 4,404,762 bonus shares of non-voting Series A-3 Preferred Stock, and up to 1,250,000 shares of non-voting Series A Preferred Stock, through Regulation A and Regulation D in the United States and in a Canadian offering. In that offering, BOXABL estimated its enterprise value at approximately $3.5 billion. On that basis, BOXABL presented a $3.5 billion valuation to FGMC in connection with the Business Combination. FGMC, after conducting its own due diligence and evaluation of the materials and information provided by BOXABL, determined that the $3.5 billion valuation was reasonable and appropriate under the circumstances. Accordingly, FGMC expressly acknowledged and agreed to proceed on the basis of such valuation for purposes of the proposed transaction. Later, on June 24, 2025, the Reg A offering closed. Some of the factors that FGMC considered in assessing the $3.5 billion valuation for BOXABL are:

| ● | The capital raise most recently conducted by BOXABL was launched at $0.80 per share, indicating a total pre-money valuation of approximately $3.5 billion. |

| ● | The offering was launched in June 2024 through a combination of Regulation A and Regulation D (accredited investors) offerings. This offering was active all the way until June 24, 2025, at the same valuation of $3.5 billion, thereby providing a recent indicator of the value of the business. |

| ● | BOXABL raised approximately $77 million under these Regulation A and Regulation D offerings which is a sizeable capital raise, with