Company: FGMCU
Filing Date: 2025-09-18
Form Type: S-4
Source: 0001104659-25-091249
Chunk: 279

Company: FG Merger II Corp.
Filing Date: 2025-09-18
Form: S-4
Chunk 279
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 between the signing of the Merger Agreement and the effective time of the Merger. |

The BOXABL board of directors also identified and considered the following factors and risks weighing against pursuing the Business Combination, although not weighted or in any order of significance:

| ● | Potential Inability to Complete the Business Combination. The BOXABL board of directors considered the possibility that the Business Combination may not be completed and the potential adverse consequences to BOXABL if the Business Combination is not completed, in particular the expenditure of time and resources in pursuit of the Business Combination and the loss of the opportunity to participate in the transaction. The BOXABL board of directors considered the uncertainty related to the Closing, including due to conditions primarily outside of the control of the parties to the transaction, such as the need for FGMC stockholder approval, BOXABL stockholder approval, antitrust clearance and the ability of the Combined Company to satisfy the initial listing requirements of the selected stock exchange. The Merger Agreement also includes provisions that prohibit BOXABL from initiating or soliciting other business combination proposals on behalf of BOXABL, which restricts BOXABL’s ability to consider other potential business combinations or similar transactions until the earlier of the termination of the Merger Agreement or the consummation of the Business Combination. |

| ● | Redemption Risk. The BOXABL board of directors considered the risk that the current public stockholders of FGMC would redeem their FGMC Public Shares for cash in connection with the consummation of the Business Combination, thereby reducing the amount of cash available to the Combined Company following the consummation of the Business Combination and considered that the Merger Agreement does not contain a minimum cash closing condition for BOXABL benefit. |

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| ● | No Survival of Remedies for Breach of Representations, Warranties or Covenants of FGMC. The BOXABL board of directors considered that the terms of the Merger Agreement provide that BOXABL will not have any surviving remedies against FGMC after the Closing to recover for losses as a result of any inaccuracies or breaches of FGMC representations, warranties or covenants set forth in the Merger Agreement. As a result, BOXABL stockholders could be adversely affected by, among other things, an inaccuracy in FGMC’s public filings. The BOXABL board of directors determined that this structure was appropriate and customary in light of the fact that several similar transactions include similar terms. |

| ● | Litigation. The BOXABL board of directors considered the possibility of litigation challenging the Business Combination or that an adverse judgment