Company: FGMCU
Filing Date: 2025-01-21
Form Type: S-1/A
Source: 0001104659-25-004764
Chunk: 278

Company: FG Merger II Corp.
Filing Date: 2025-01-21
Form: S-1/A
Chunk 278
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’s common
stock is redeemed pursuant to the redemption provisions described in this prospectus under the section of this prospectus entitled “Description
of Securities — Common Stock” or if we purchase a U.S. holder’s common stock in an open market transaction (such open
market purchase of common stock by us is referred to as a “redemption” for the remainder of this discussion), the treatment
of the transaction for U.S. federal income tax purposes will depend on whether the redemption or purchase by us qualifies as a sale of
the common stock under Section 302 of the Code. If the redemption or purchase by us qualifies as a sale of the common stock, the
U.S. holder will be treated as described under “U.S. Holders — Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition
of Common Stock and Rights” above. If the redemption or purchase by us does not qualify as a sale of the common stock, the U.S.
holder will be treated as receiving a corporate distribution with the tax consequences described above under “U.S. Holders —
Taxation of Distributions”. Whether a redemption or purchase by us qualifies for sale treatment will depend largely on the total
number of shares of our stock treated as held by the U.S. holder (including any stock constructively owned by the U.S. holder as a result
of owning rights) relative to all of our shares outstanding both before and after the redemption or purchase by us. The redemption or
purchase by us of common stock generally will be treated as a sale of the common stock (rather than as a corporate distribution) if the
redemption or purchase by us (i) is “substantially disproportionate” with respect to the U.S. holder, (ii) results
in a “complete termination” of the U.S. holder’s interest in us or (iii) is “not essentially equivalent
to a dividend” with respect to the U.S. holder. These tests are explained more fully below.

In determining whether any of the foregoing tests
are satisfied, a U.S. holder takes into account not only stock actually owned by the U.S. holder, but also shares of our stock that are
constructively owned by such U.S. holder. A U.S. holder may constructively own, in addition to stock owned directly, stock owned by certain
related individuals and entities in which the U.S. holder has an interest or that have an interest in such U.S. holder, as well