Company: FGMCU
Filing Date: 2025-12-30
Form Type: S-4/A
Source: 0001104659-25-124947
Chunk: 208

Company: FG Merger II Corp.
Filing Date: 2025-12-30
Form: S-4/A
Chunk 208
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The exclusive federal forum provision for Securities Act claims contained in the Proposed Charter may be unenforceable, could limit shareholders’ choice of forum by requiring federal court litigation, and does not waive compliance with federal securities laws.

The Proposed Charter provides that the federal district courts of the United States of America shall be the exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act of 1933, as amended. Section 22 of the Securities Act, however, creates concurrent jurisdiction for federal and state courts over all suits brought to enforce any duty or liability created by the Securities Act or the rules and regulations thereunder. Accordingly, there is uncertainty as to whether a court would enforce our exclusive federal forum provision with respect to Securities Act claims, and a state court may determine that the provision is inapplicable or unenforceable as to such claims. To the extent a court were to enforce the provision, it may limit the ability of shareholders to bring Securities Act claims in state courts that they find favorable or convenient, which could result in increased costs to bring such claims, require shareholders to litigate in federal court that may be more distant or inconvenient, and discourage or limit claims or proceedings against us, our directors, officers, or other employees. Conversely, if a court were to find the provision inapplicable or unenforceable with respect to Securities Act claims, we may incur additional costs associated with litigating such claims in multiple jurisdictions. In all cases, shareholders will not be deemed to have waived our compliance with the federal securities laws and the rules and regulations thereunder, and the exclusive federal forum provision does not relieve us of our duties to comply with such laws and regulations.

The proposed reincorporation from Nevada to Texas could diminish the Combined Company stockholders’ ability to pursue certain claims, subject its directors and officers to a different fiduciary duty regime, and create legal uncertainties that may adversely affect the value of its securities.

Upon consummation of the merger, the Combined Company will cease to be governed by the NRS and instead will be organized under the TBOC. Although FGMC believes that Texas law provides a more predictable framework for corporate governance and offers enhanced protections against meritless litigation, these perceived advantages may have consequences that are adverse to investors.

First, the Texas certificate of formation and bylaws that will become effective at the effective time of the reincorporation designate the state and federal courts located in the State of Texas as the exclusive forum for (i) any derivative action or proceeding brought