Fundamental Global announces special rights distribution to shareholders.

Fundamental Global Inc. is forming FG CVR Trust for its shareholders of record as of August 8, 2025. The trust will distribute a non-transferable Contingent Value Right (CVR) to each shareholder, entitling them to receive future distributions, including an initial cash distribution of $10.00 per common share, expected to be paid in September 2025, subject to final approval and conditions. The company will soon change its name to FG Nexus Inc.

Title: Fundamental Global Inc. Forms FG CVR Trust for Shareholders, Announces Strategic Pivot

Fundamental Global Inc. (Nasdaq: FGF), which will soon change its name to FG Nexus Inc., has announced the formation of FG CVR Trust, a Delaware statutory trust, for the benefit of its common shareholders. The trust will distribute a non-transferable Contingent Value Right (CVR) to each shareholder, entitling them to receive future distributions, including an initial cash distribution of $10.00 per common share, expected to be paid in September 2025, subject to final approval and conditions [1].

The CVR Trust is expected to have assets valued at over $30.00 per common share, with the initial cash distribution of $10.00 per share representing a significant return for shareholders [1]. The trust will distribute additional cash or in-kind securities as legacy assets are monetized over time. The formation of the trust coincides with Fundamental Global's strategic pivot into blockchain technology, with the company retaining approximately $5.00 per share in net asset value (NAV) [2].

Fundamental Global has entered into a definitive agreement for a $200 million private placement, expected to close on August 1, 2025, to support its strategic transformation. The company will implement an Ethereum Treasury Strategy, positioning itself as a leader in blockchain innovation and the tokenization of real-world assets (RWAs) [1].

The assets being transferred to the CVR Trust include cash and cash equivalents, the net assets of the Strong Technical Services operating business, and the majority of the Company’s current equity holdings and other interests, including 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, and other holdings [1].

Fundamental Global's announcement represents a significant financial restructuring that will immediately return substantial capital to shareholders while repositioning the company for a completely new strategic direction. The company is creating the FG CVR Trust and distributing $10.00 per share in cash to shareholders of record as of August 8, 2025, with payments expected in September. This represents an immediate and substantial return of capital [2].

The total value proposition is particularly noteworthy. The CVR Trust assets have an estimated book value exceeding $40 million, translating to over $30.00 per common share. This means shareholders stand to potentially receive additional distributions beyond the initial $10.00 payment as the trust monetizes various legacy assets over time [2].

The company appears to be strategically separating its traditional asset portfolio from its new blockchain initiative, allowing shareholders to benefit from both the value of existing assets through the trust and the company's new focus on blockchain technology [2].

References
[1] https://www.globenewswire.com/news-release/2025/08/01/3125847/0/en/FUNDAMENTAL-GLOBAL-INC-ANNOUNCES-FORMATION-OF-FG-CVR-TRUST-AND-10-00-PER-SHARE-SPECIAL-DISTRIBUTION.html
[2] https://www.stocktitan.net/news/FGF/fundamental-global-inc-announces-formation-of-fg-cvr-trust-and-10-00-6abtnxmrmnuz.html