Company: FGMCU
Filing Date: 2025-01-21
Form Type: S-1/A
Source: 0001104659-25-004764
Chunk: 277

Company: FG Merger II Corp.
Filing Date: 2025-01-21
Form: S-1/A
Chunk 277
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 a result of a dissolution and liquidation in the event we do not consummate an initial business
combination within the required time period, a U.S. holder generally will recognize capital gain or loss in an amount equal to the difference
between the amount realized and the U.S. holder’s adjusted tax basis in the common stock or rights. 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 common stock or rights so disposed
of exceeds one year. It is unclear, however, whether the redemption rights with respect to the common stock described in this prospectus
may suspend the running of the applicable holding period for this purpose. If the running of the holding period for the common stock
is suspended, then non-corporate U.S. holders may not be able to satisfy the one-year holding period requirement for long-term capital
gain treatment, in which case any gain on a sale or taxable disposition of the shares would be subject to short-term capital gain treatment
and would be taxed at regular ordinary income tax rates. Long-term capital gains recognized by non-corporate U.S. holders will be eligible
to be taxed at reduced rates. The deductibility of capital losses is subject to limitations.

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Generally, the amount of gain or loss recognized
by a U.S. holder is an amount equal to the difference between (i) the sum of the amount of cash and the fair market value of any
property received in such disposition (or, if the common stock or rights are held as part of units at the time of the disposition, the
portion of the amount realized on such disposition that is allocated to the common stock or the rights based upon the then relative fair
market values of the common stock and the rights included in the units) and (ii) the U.S. holder’s adjusted tax basis in its
common stock or rights so disposed of. A U.S. holder’s adjusted tax basis in its common stock or rights generally will equal the
U.S. holder’s acquisition cost (that is, as discussed above, the portion of the purchase price of a unit allocated to a share of
common stock or one right to receive one-tenth (1/10) of a share of common stock) less, in the case of a share of common stock, any prior
distributions treated as a return of capital.

Redemption of Common Stock.

In the event that a U.S. holder