Company: FGMCU
Filing Date: 2025-01-21
Form Type: S-1/A
Source: 0001104659-25-004764
Chunk: 28

Company: FG Merger II Corp.
Filing Date: 2025-01-21
Form: S-1/A
Chunk 28
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 cash, (b) 2,200,005 shares of 1347 Capital common stock, (c) 1,000,006 warrants, each exercisable for one share of 1347 Capital          
 common stock at an exercise price of $11.50 per share, and (d) 666,670 warrants, each exercisable for one share of 1347 Capital common      
 stock at an exercise price of $12.50 per share. In addition, pursuant to the terms of the merger agreement, 1347 Capital issued and         
 sold to 1347 Investors LLC 400,000 newly issued shares of Class A preferred stock for $10,000,000. There was no extension of the            
 time period for which 1347 Capital had to complete its business combination. Approximately 60.87% of the shares held by public stockholders 
 were redeemed in connection with the business combination.                                                                                  |

In recent years, the number of special purpose acquisition companies that have been formed has increased substantially. Many potential targets for special purpose acquisition companies have already entered into an initial business combination, and there are still many companies preparing for an initial public offering. As a result, at times, fewer attractive targets may be available to consummate an initial business combination. In addition, because there are more special purpose acquisition companies seeking to enter into an initial business combination with available targets, the competition for available targets with attractive fundamentals or business models may increase, which could cause targets companies to demand improved financial terms. See “Risk Factors — As the number of special purpose acquisition companies evaluating targets increases, attractive targets may become scarcer and there may be more competition for attractive targets. This could increase the cost of our initial business combination and could even result in our inability to find a target or to consummate an initial business combination” on page 34 for additional information. The high level of competition may negatively
impact the acquisition terms we are able to negotiate because, among other things, attractive target companies will be able to demand
higher purchase prices and more favorable closing conditions, including minimum cash required in the trust account at closing or PIPE
financing requirements and board designation rights with respect to the combined company.

<div align='center'>8

BUSINESS COMBINATION CRITERIA</div>

Consistent with our business strategy, we have identified the following
general criteria and guidelines that we believe are important in evaluating prospective target businesses. We will use these criteria
and guidelines in evaluating initial business combination opportunities, but we may decide to enter into