Company: FGMCU
Filing Date: 2025-12-30
Form Type: S-4/A
Source: 0001104659-25-124947
Chunk: 180

Company: FG Merger II Corp.
Filing Date: 2025-12-30
Form: S-4/A
Chunk 180
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 ● | a determination that the Combined Company Common Stock is a “penny stock” which will require brokers trading in the Combined Company Common Stock to adhere to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading market for the Combined Company Common Stock; |

| ● | a limited amount of news and analyst coverage; and |

| ● | a decreased ability to issue additional securities or obtain additional financing in the future. |

The National Securities Markets Improvement Act of 1996, which is a federal statute, prevents or preempts the states from regulating the sale of certain securities, which are referred to as “covered securities.” If the Combined Company Common Stock is not listed on Nasdaq or other Applicable Stock Exchange, such securities would not qualify as covered securities and we would be subject to regulation in each state in which we offer our securities because states are not preempted from regulating the sale of securities that are not covered securities.

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If we are deemed to be an investment company under the Investment Company Act, we may be required to institute burdensome compliance requirements and our activities may be restricted, which may make it difficult for us to complete our initial business combination. If we are deemed to be an investment company under the Investment Company Act, our activities may be restricted, including:

| ● | restrictions on the nature of our investments; |

| ● | restrictions on the enforceability of agreements entered into by us, each of which may make it difficult for us to complete our initial business combination; and |

| ● | restrictions on the issuance of securities, each of which may make it difficult for us to complete our initial business combination. |

In addition, we may have imposed upon us burdensome requirements, including:

| ● | registration as an investment company with the SEC (which may be impractical and would require significant changes in, among other things, our capital structure); |

| ● | adoption of a specific form of corporate structure; and |

| ● | reporting, record keeping, voting, proxy and disclosure requirements and compliance with other rules and regulations that we are currently not subject to. |

In order not to be regulated as an investment company under the Investment Company Act, unless we can qualify for an exclusion, we must ensure that we are engaged primarily in a business other than investing, reinvesting or trading of securities and that our activities do not include investing, reinvesting, owning, holding or trading “investment securities” constituting more than 40.0% of our total assets (exclusive of U