Company: FGMCU
Filing Date: 2025-09-18
Form Type: S-4
Source: 0001104659-25-091249
Chunk: 293

Company: FG Merger II Corp.
Filing Date: 2025-09-18
Form: S-4
Chunk 293
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 holder generally will constitute “qualified dividends” that will be subject to tax at the maximum tax rate applicable to long-term capital gains. It is unclear whether the redemption rights with respect to the FGMC Public Shares described in this joint proxy statement/prospectus may prevent a U.S. holder from satisfying the applicable holding period requirements with respect to the dividends received deduction or the preferential tax rate on qualified dividend income, as the case may be.

Taxation of Redemption Treated as a Sale of FGMC Public Shares.If the redemption of a U.S. holder’s FGMC Public Shares is treated as a sale, as discussed above under the section entitled “—U.S. Federal Income Tax Consequences of a Redemption of FGMC Public Shares,” a U.S. holder generally will recognize capital gain or loss in an amount equal to the difference between the amount of cash received and the U.S. holder’s adjusted tax basis in the FGMC Public Shares redeemed. Any such capital gain or loss generally will be long-term capital gain or loss if the U.S. holder’s holding period for the FGMC Public Shares so disposed of exceeds one year. It is unclear, however, whether the redemption rights with respect to the FGMC Public Shares described in this joint proxy statement/prospectus may suspend the running of the applicable holding period for this purpose. Long-term capital gains recognized by non-corporate U.S. holders are generally eligible to be taxed at preferential rates. The deductibility of capital losses is subject to limitations. U.S. holders who hold different blocks of FGMC Public Shares (FGMC Public Shares purchased or acquired on different dates or at different prices) should consult their tax advisor to determine how the above rules apply to them.

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Non-U.S. Holders Taxation of Redemption Treated as a Distribution.If the redemption of a Non-U.S. holder’s FGMC Public Shares is treated as a distribution, as discussed above under the section entitled “ —U.S. Federal Income Tax Consequences of a Redemption of FGMC Public Shares,” such a distribution generally will constitute a dividend for U.S. federal income tax purposes to the extent paid out of FGMC’s current or accumulated earnings and profits (as determined under U.S. federal income tax principles). Unless such dividend is effectively connected with the Non-U.S. holder’s conduct of a trade or business within the United States (and, if required by an applicable income tax treaty, is attributable to a U.S. permanent establishment or fixed base maintained by