FG CVR Trust

(A Delaware Statutory Trust)

Established for the benefit of the common shareholders of FG Nexus Inc. (f/k/a Fundamental Global Inc.) as of August 8, 2025.

Key Facts

  • Established: August 8, 2025
  • CVRs Distributed: 1,328,554
  • Trustee: Wilmington Trust, N.A.
  • Initial Distribution: $10 per CVR

About the FG CVR Trust

FG CVR Trust, a Delaware Statutory Trust, was established for the benefit of the common shareholders of FG Nexus Inc. (f/k/a Fundamental Global Inc.) as of August 8, 2025.

On this date, assets with a net book value of approximately $49 million were transferred to the Trust.

Assets Transferred to the Trust:

  • Strong Technical Services, Inc.
  • Saltire Capital Ltd. (preferred shares + accumulated dividends)
  • FG Merchant Partners
  • Firefly Systems Inc.
  • GreenFirst Forest Products Ltd.
  • FG Communities Inc.
  • Craveworthy Brands
  • FG Merger II Corp.
  • Aldel Financial II Inc.
  • Greenland Exploration Limited
  • Argo Holdings
  • Think Markets
  • Pivotal Capital
  • B-Scada Inc.
  • Cash & cash equivalents
    at the establishment

 

Book value transferred: approximately $48.9M

In September 2025, the Trust distributed $10 per CVR (totaling ~$13.3M) to CVR holders.

Future distributions are not guaranteed.

Governance & Administration

Trustee: Wilmington Trust, National Association

Management Committee:

• D. Kyle Cerminara
• Larry G. Swets

CVRs are not transferable except under limited conditions described in the CVR Agreement.

Holdings of the CVR Trust

Strong Technical Services (STS)

Strong Technical Services is a U.S.-based technology and field-services provider specializing in digital signage, cinema systems, LED displays, and nationwide managed services. The company operates a 24/7 network operations center and deploys field engineers nationwide.

Website: https://strong-tech.com

FG Merchant Partners

FG Merchant Partners is a merchant-banking and SPAC-sponsorship platform that co-sponsors SPACs and invests alongside founders in capital markets ventures. Its portfolio includes interests tied to market cycles and sponsor-promote structures.

Website: NA

Firefly Systems, Inc.

Firefly Systems is a digital out-of-home advertising network deploying rooftop and in-vehicle digital screens in major urban markets. It offers programmatic ad inventory, real-time targeting, and a technology-driven growth model.

Website: https://fireflyon.com

GreenFirst Forest Products

GreenFirst is a Canadian forestry and lumber company focused on sustainable forest management and lumber production. Its assets include sawmills, forestry rights, and related manufacturing operations.

Website: https://greenfirst.ca

FG Communities

FG Communities is a U.S. owner-operator of manufactured housing communities, primarily in the Southeast. The business produces stable cash flow supported by long-term demand for affordable housing.

Website: https://fgcommunities.com

Craveworthy Brands

Craveworthy Brands is a multi-concept restaurant platform that develops, acquires, franchises, and operates fast-casual and emerging food-service brands. Its performance is driven by franchise growth and brand scalability.

Website: https://craveworthybrands.com

FG Merger II Corp.

FG Merger II Corp. is a Nevada-incorporated blank-check company formed to pursue a merger, stock exchange, asset acquisition, or similar business combination.

Website: https://fgmerger.com/

Aldel Financial II Inc.

Aldel Financial II (Nasdaq: ALDF) is a SPAC established to complete a merger, stock exchange, asset acquisition, or related business combination with one or more companies.

Website: https://aldelfinancial.com/

Greenland Exploration Ltd.

Greenland Exploration Limited is a Texas-based energy company focused on developing strategic assets in North America, including the Jameson Land Basin in Greenland. It is part of a planned merger to form Greenland Energy Company (Nasdaq: GLND), intended to advance exploration and drilling initiatives.

Website: Greenland Limited

Tax Reporting

CVR Taxation Q&A

FG Nexus Inc. (“FG Nexus”) will report the distribution of the Contingent Value Right (“CVR”) as a non-cash distribution on Form 1099-DIV, based on the fair market value of the CVR as of the August 7, 2025 distribution date, which FG Nexus has determined to be $42.00 per share.

FG Nexus has determined that it has no current or accumulated earnings and profits.  As such, the distribution will be treated as a non-taxable return of capital to the extent of the shareholder’s tax basis in FG Nexus common stock.  If a shareholder’s tax basis is less than the $42.00 per share return of capital, the excess would be treated as a capital gain.

For additional information on the distribution of the CVR, please see the Form 8937 FG Nexus will publish on its website.

The $10.00 cash distribution per CVR, which was made in September 2025, will be reported on Form 1099-DIV from FG CVR SpinCo, LLC (“FG CVR SpinCo”).

FG CVR SpinCo has determined that it has no current or accumulated earnings and profits.  As such, the $10.00 cash distribution will be treated as a non-taxable return of capital to the extent of the shareholder’s tax basis in the CVR, which is  $42.00 per CVR reported on the FG Nexus Form 1099-DIV.

Yes. Tax law with respect to CVRs is highly uncertain.  The Company has made its best determination as to tax reporting with respect to the CVRs and intends to report consistently with what is described above.

The Depository Trust Company has assigned CUSIP 303CVR013 to the CVRs. Beneficial holders of CVRs received the $10 per CVR distribution payment directly through their bank or broker. Registered holders of CVRs received the $10 per CVR distribution payment via US mail.

If you were a registered FG Nexus shareholder at the time of the distribution of the CVR in August 2025, please contact our transfer agent, Broadridge, by calling 877-830-4936 or 720-378-5591 or emailing shareholder@broadridge.com.

If you were a beneficial FG Nexus shareholder at the time of the distribution of the CVR in August 2025  (in other words, if you held your shares through a broker, bank or other nominee): Please direct any questions regarding the CVR distribution or the $10 per CVR cash payment to your broker, bank or other nominee.