Company: FGMCU
Filing Date: 2025-09-18
Form Type: S-4
Source: 0001104659-25-091249
Chunk: 287

Company: FG Merger II Corp.
Filing Date: 2025-09-18
Form: S-4
Chunk 287
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 REGARDING THE U.S. FEDERAL, STATE, LOCAL AND NON-U.S. INCOME AND OTHER TAX CONSEQUENCES TO YOU IN LIGHT OF YOUR PARTICULAR INVESTMENT OR TAX CIRCUMSTANCES. U.S. Federal Income Tax Consequences of the Conversion The U.S. federal income tax consequences of the Conversion will depend primarily upon whether the Conversion qualifies as a “reorganization” within the meaning of Section 368 of the Code. Under Section 368(a)(1)(F) of the Code, a reorganization is a “mere change in identity, form, or place of organization of one corporation, however effected” (an “F Reorganization”). Pursuant to the Conversion, FGMC will change its jurisdiction of incorporation by converting FGMC from a Nevada corporation to a Texas corporation.

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The Conversion would generally be expected to be treated for U.S. federal income tax purposes as if FGMC Nevada (i) transferred all of its assets and liabilities to FGMC Texas in exchange for all of the outstanding common stock and warrants of FGMC Texas; and then (ii) distributed the common stock and warrants of FGMC Texas to the stockholders and warrant holders of FGMC Nevada in liquidation of FGMC Nevada. FGMC and BOXABL intend and expect the Conversion to constitute a reorganization within the meaning of Section 368(a)(1)(F) of the Code for U.S. federal income tax purposes. However, due to the absence of direct guidance on the application of Section 368(a)(1)(F) of the Code to a statutory conversion of a corporation holding only investment-type assets, such as FGMC, this result is not entirely clear. Further, for the same reason, it is not clear whether the Conversion, if it were not to constitute an F Reorganization, would constitute another form of reorganization under section 368. Accordingly, due to the absence of such guidance, it is not possible to predict whether the IRS or a court considering the issue would take a contrary position. U.S. Holders If the Conversion qualifies as a reorganization within the meaning of Section 368(a)(1)(F) of the Code, except as otherwise provided in this discussion, a U.S. Holder of FGMC Public Shares generally would not be expected to recognize gain or loss upon the deemed exchange of its FGMC Nevada shares for FGMC Texas shares. The aggregate tax basis in the FGMC Texas stock that a U.S. holder is treated as receiving in the Conversion will equal such U.S