FG Merger II Corp. (NASDAQ: FGMC) announced that approximately 6.6 million shares were tendered for redemption ahead of a June 9 special meeting to vote on the proposed business combination with BOXABL. Following the redemption deadline, approximately $68.8 million is expected to be removed from FGMC's trust account, leaving about $14 million remaining and approximately 1.4 million public shares outstanding. This significant redemption activity underscores the scrutiny SPAC mergers often face from investors.
Stockholders who do not redeem their shares, or who withdraw redemption requests before closing, are expected to become shareholders of BOXABL upon completion of the transaction. If approved by stockholders and all remaining closing conditions are satisfied, the combined company is expected to be renamed BOXABL Inc. and begin trading on Nasdaq under the ticker BXBL. The full press release is available at https://ibn.fm/OBv13.
BOXABL is transforming the housing market with its modular building systems designed to deliver affordable, high-quality homes at unprecedented speed. Founded in 2017, BOXABL's innovative approach has attracted worldwide attention as it aims to solve housing challenges for individuals and communities alike. Its flagship product, the Casita, is a 361 square foot studio unit with a full kitchen, bathroom, and utilities. The Casita unfolds on-site in less than an hour and is manufactured inside BOXABL's facilities. BOXABL also has announced the Baby Box, a smaller 120 square foot unit built to RV code, intended for simpler, no foundation setups. Additionally, BOXABL is developing stackable and connectable box models that can be combined to form townhomes, multifamily units, or larger single-family homes. More information about BOXABL and its products can be found at www.boxabl.com.
The merger vote is a critical milestone for BOXABL, as going public via a SPAC merger would provide the capital needed to scale production and meet growing demand for affordable housing. The redemption results indicate that a substantial portion of FGMC's public shareholders opted to cash out rather than invest in the combined entity. However, the remaining trust funds, along with any additional financing, will support BOXABL's growth plans. The outcome of the vote and the subsequent Nasdaq listing under the ticker BXBL will determine the next steps for the company.
FG Merger II Corp. is a blank check company, also commonly referred to as a special purpose acquisition company, or SPAC, formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities. For more information about FG Merger II Corp., visit https://fgmerger.com.
