FG Nexus Board Approves Strategy To Acquire Affordable Housing Communities And Make $10M Investment In FG Communities; Company Plans To Change Its Name To FG Communities Holdings

FG Nexus (NASDAQ:FGNX, FGNXP))) (the "Company") today announced that its Board of Directors has approved a strategy to acquire affordable housing communities and make a $10 million investment in FG Communities, Inc. ("FG Communities"), representing approximately 10% of FG Communities outstanding common stock. FG Communities, a privately held self-administered and self-managed real estate company focused on preserving and improving affordable housing through the acquisition and operation of manufactured housing communities, has a growing portfolio of 96 communities with over 4,000 home sites either owned or pending acquisition. FG Communities will remain a separate, independently operated company following the Company’s investment. This strategy is the next step in the Company’s previously announced transition into a real estate operating company focused primarily on the acquisition and management of land-lease affordable housing communities.Direct and Indirect Investments in Affordable HousingThe Company’s strategy has two components: direct acquisitions of real property by the Company itself, and an indirect investment through its $10 million investment in FG Communities, which will continue to operate independently under its own management. The Company plans to pursue a strategy of acquiring real estate with land-lease affordable housing communities. The Company expects to fund direct property acquisitions through a combination of cash on hand, debt financing and proceeds from issuances of its common stock. The structure and financing of each acquisition will depend on the characteristics of the property, prevailing market conditions and the Company’s capital-allocation priorities.Certain officers and directors of the Company, including Kyle Cerminara, also hold significant equity positions in, and serve as officers and directors of, FG Communities. Because certain directors and officers of the Company are affiliated with FG Communities, the Company’s proposed investment was evaluated and approved by the Board of Directors following a review and recommendation from its Special Committee, consisting solely of independent directors, and an independent financial advisor. Kyle Cerminara, Chairman and Chief Executive Officer of the Company, also serves as President and Chairman of FG Communities.Kyle Cerminara, Chairman and Chief Executive Officer of the Company, stated:"The planned real estate acquisition strategy marks an important step in our transformation into a leading owner and operator of land-lease affordable housing communities. The Company's mission will be to preserve and improve affordable housing in the United States. We estimate that the total addressable market for affordable housing communities in the United States exceeds $500 billion. It is a large and highly fragmented market that we intend to participate in meaningfully over the coming decades. We have identified a strong pipeline of potential acquisition opportunities. Leveraging FG Nexus's balance sheet and access to capital should allow us to aggressively acquire land-lease affordable housing communities and build a substantial portfolio of income-producing real estate."Mr. Cerminara continued:"FG Communities has built a scalable operating platform for the acquisition and management of land-lease affordable housing communities. We believe our investment in FG Communities provides an immediate and opportune investment opportunity in land-lease affordable housing communities. We also anticipate that our investment in FG Communities will benefit the Company in growing and optimizing its planned affordable housing portfolio."Corporate Name and Ticker Symbol ChangesIn connection with its strategic transformation, the Company plans to change its corporate name to FG Communities Holdings, Inc. The Company’s new name reflects its strategic focus on affordable housing and does not reflect majority ownership or control of FG Communities, Inc., which is a separate, privately held company.The Company also plans to change the Nasdaq ticker symbol for its common stock from FGNX to FGC and the ticker symbol for its 8.00% Cumulative Preferred Stock, Series A, from FGNXP to FGCPP.The name and ticker-symbol changes are expected to become effective soon, subject to completion of applicable corporate filings and confirmation by Nasdaq. Until the effective date, the Company’s common and preferred stock will continue to trade under FGNX and FGNXP, respectively. The Company will announce the effectiveness of the changes to the Company's name and ticker symbols.No action is expected to be required from existing stockholders in connection with the name or ticker-symbol changes.