FG Nexus board approves $10M stake in FG Communities, plans rebrand

FG Nexus (Nasdaq: FGNX, FGNXP) announced that its board of directors has approved a $10 million investment in FG Communities, Inc., a privately held company focused on manufactured housing communities, representing approximately 10% of FG Communities' outstanding common stock.

The company also plans to change its name to FG Communities Holdings, Inc. and update its Nasdaq ticker symbols from FGNX to FGC and from FGNXP to FGCPP, pending completion of corporate filings and Nasdaq confirmation.

FG Communities operates a portfolio of 96 manufactured housing communities with over 4,000 home sites either owned or pending acquisition. The privately held company will continue to operate independently following the investment.

FG Nexus said its strategy has two components: direct acquisitions of land-lease affordable housing properties by the company itself, and the indirect stake in FG Communities. The company plans to fund direct acquisitions through cash on hand, debt financing, and proceeds from common stock issuances.

Because certain officers and directors of FG Nexus, including Chairman and Chief Executive Officer Kyle Cerminara, also hold equity positions in and serve in leadership roles at FG Communities, the investment was reviewed by a special committee of independent directors and an independent financial advisor before board approval. Cerminara also serves as President and Chairman of FG Communities.

The name and ticker symbol changes are expected to take effect soon, and existing stockholders are not expected to be required to take any action in connection with the changes.

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