FG Merger Corp (NASDAQ:FGMC) Reports Granting Institutional-Styled Opportunity To The Retail Community

Rhea-AI Summary

FG Merger Corp. (NASDAQ: FGMC) is introducing a unique investment opportunity that allows retail investors access to securities typically reserved for institutional investors. Following its upcoming business combination with iCoreConnect Inc., FG Merger Corp. will offer convertible preferred stock with a 12% coupon, payable in shares or cash. Investors will also benefit from downside protection during the first year, with a dynamic conversion price based on stock performance. This structure is akin to a Private Investment In Public Equity (PIPE) deal, allowing retail investors to buy shares through standard brokerage accounts. The initiative seeks to level the playing field in the stock market, aiming for greater inclusivity among investors.

Positive

• Retail investors gain access to institutional-caliber investment opportunities with the convertible preferred stock offering.
• The 12% coupon provides an attractive yield compared to traditional equity investments.
• Downside protection mechanism mitigates risk for investors, enabling a more secure investment environment.

Negative

• None.

FORT LAUDERDALE, FL / ACCESSWIRE / April 18, 2023 / It's often touted that the stock market is accessible to everyone who can open a brokerage account. The implication is that the stock market is a level playing field and its gains are available for all.

This is perhaps one of the most misleading concepts on Wall Street. On the one hand, it's true that stock market gains are not exclusive to any particular group; however, the metrics show a clear disproportion in the winners and losers in the markets. Several studies have shown retail traders have a very high likelihood of failure, while the story for hedge funds tends to favor positive returns. For example, the average hedge fund has generated positive returns every year since 2019 (excluding 2022) according to BarclayHedge.

FG Merger Corp. (NASDAQ:FGMC) provides retail investors access to a security that has historically only been available to institutions. Retail investors will be able to invest in a publicly-traded company with a unique asymmetric structure, and they'll be able to do that straight through their regular brokerage accounts!

How It Works

FG Merger Corp is a SPAC providing a structure usually only found in a Private Investment In Public Equity (PIPE) deal.

A PIPE investment is a type of private placement of securities in which a company issues stock or other securities to a select group of private investors, typically institutional investors such as private equity firms, hedge funds or mutual funds. These deals are often made by companies that are publicly traded and in need of additional capital to finance growth or other strategic initiatives. These companies may offer discounted shares or unique structures to private investors in exchange for their investment.

In the case of FG Merger Corp., upon closing of the business combination with iCoreConnect Inc. ("iCoreConnect"), FG Merger Corp. investors will receive convertible preferred stock that has a 12% coupon. This coupon may be paid in kind through the issuance of more shares of preferred stock, or paid in cash. After the first two years, the coupon must be paid in cash.

FG Merger Corp. investors will also have downside protection from the fluctuation in the stock's price for the first 12 months of their investment. The convertible preferred stock has an initial conversion price of $10.00 per share meaning one share of preferred is convertible into one share of common stock. One year from the closing of the transaction, the conversion price is reset based on the trading price of the common stock. If the company's common shares are trading up at $12, for example, the conversion price stays at $10, and the holder gets full upside. Conversely, if the stock price falls to $8 at the time of the reset in 1 year, however, then the conversion price declines to $8, and the investor loses nothing because one share of preferred stock is convertible into more than one share of common stock. The conversion price may go as far down as $2.

How To Invest In FG Merger Corp.

Retail investors can access this one-of-a-kind opportunity through the purchase of FGMC shares on the market today. This is achievable through any brokerage account with access to the Nasdaq Global Market. To participate in this structure, an investor may acquire common shares now and hold on to them through the close of the business combination. At the close of the business combination with iCoreConnect, the common stock will be automatically exchanged for convertible preferred stock.

Learn more about FG Merger Corp. here. Please see important additional information here.

Featured Photo by Kenny Eliason on Unsplash

Contact:

Kaia Roman, VP Strategy and Communications
kaia.roman@psycheceutical.com

SOURCE: FG Merger Corp.

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FAQ

What is FG Merger Corp.'s recent investment opportunity?

FG Merger Corp. is offering convertible preferred stock to retail investors following its business combination with iCoreConnect Inc., providing access to unique investment structures.

What are the benefits of investing in FG Merger Corp. (FGMC)?

Investors will receive a 12% coupon and downside protection for the first year, allowing for a secure investment with potential upside.

How does the convertible preferred stock work in FG Merger Corp.?

The convertible preferred stock can be converted into common stock at a price that adjusts based on the stock's trading price after one year.

When will FG Merger Corp.'s business combination with iCoreConnect occur?

The exact date of the business combination has not been specified, but it will be a significant event for investors.

How can I invest in FG Merger Corp. (FGMC)?

Investors can purchase FG Merger Corp. shares through any brokerage account that has access to the Nasdaq Global Market.