FG Nexus to evaluate strategic alternatives

FG Nexus (FGNX) announced the formation of a special committee of the company’s board of directors comprised solely of independent directors to evaluate strategic alternatives. Initially, the special committee will evaluate the previously announced potential business combination with FG Communities. The proposed transaction is considered a related party transaction because FG Communities was founded by FG Nexus’ chairman and CEO and is controlled by several persons, including Kyle Cerminara, who are affiliated with the company. The special committee has retained an independent financial advisor to assist in its and the board’s evaluation and negotiation of the potential transaction and/or other strategic alternatives and, if pursued, to provide a fairness opinion for the potential transaction. The board’s discussions with respect to the potential transaction are preliminary in nature and no decisions or agreements have been reached. There can be no assurance that the potential transaction will be pursued or consummated.