FG Nexus Board of Directors Approves Affordable Housing Real Estate Acquisition Strategy and $10 Million Investment in FG Communities

FG Nexus advances its shift into affordable housing real estate with a $10 million stake in FG Communities and planned name and ticker changes.

Rhea-AI Summary

FG Nexus (FGNX) approved a new strategy to acquire land-lease affordable housing communities and to invest $10 million in FG Communities, representing about 10% of FG Communities’ outstanding common stock.

FG Communities, a privately held real estate company focused on manufactured housing, has a growing portfolio of 96 communities with over 4,000 home sites owned or pending acquisition and will remain independently operated. The strategy advances FG Nexus’s transition into a real estate operating company focused on affordable housing, combining direct property acquisitions with its minority stake in FG Communities. Direct acquisitions are expected to be funded with cash on hand, debt financing and issuances of common stock. A Special Committee of independent directors and an independent financial advisor reviewed and recommended the related-party investment.

The company plans to change its name to FG Communities Holdings, Inc. and to change its Nasdaq tickers from FGNX to FGC and from FGNXP to FGCPP, subject to corporate filings and Nasdaq confirmation.

Positive

• $10 million minority investment in FG Communities, about 10% of its common stock
• Exposure to FG Communities’ portfolio of 96 communities and over 4,000 home sites
• Board-approved strategy clarifies transition into affordable housing real estate operations

Negative

• Direct acquisitions may be funded partly through issuances of common stock, implying potential dilution for existing shareholders

News Explained

The board approved the strategy and proposed $10 million investment, but the release describes it as planned rather than closed; FG Communities remains separately operated, so no completed ownership or control change is established.

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Details

Market Reaction – FGNX

$8.30 $8.67 Day Range

$42.29M Market Cap

Following this news, FGNX has gained 0.24%, reflecting a mild positive market reaction. The stock is currently trading at $8.30.

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Market Context

The prior transition announcement drew a -2.71% 24-hour reaction on Jul 1, while this release conver...

Analysis

The prior transition announcement drew a -2.71% 24-hour reaction on Jul 1, while this release converted that direction into a $10 million FG Communities investment and direct acquisition plan.

Key Figures

FG Communities investment: $10 million FG Communities ownership: approximately 10% Portfolio communities: 96 communities +2 more

FG Communities investment

$10 million

Investment approved by the Board

FG Communities ownership

approximately 10%

Of FG Communities outstanding common stock

Portfolio communities

96 communities

FG Communities portfolio owned or pending acquisition

Home sites

over 4,000 home sites

Owned or pending acquisition

Affordable housing market

exceeds $500 billion

Management estimate of U.S. total addressable market

Historical Context

2 past events · Latest: Jul 01

2 events

1. Jul 01

   Real estate transition

   24h Move

   -2.7%

   Board announced real estate division and planned exit from digital assets.

2. May 04

   Strategic alternatives

   24h Move

   -7.7%

   Special Committee evaluated a potential FG Communities business combination; discussions remained preliminary.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

land-lease, special committee, cumulative preferred stock

3 terms

land-lease technical

"acquisition and management of land-lease affordable housing communities"

A land-lease is a long-term agreement where someone rents a piece of land from its owner instead of buying it, often building or placing structures on that land while paying regular rent. Investors care because the lease controls who earns income, who bears upkeep and improvement costs, and when ownership of buildings may revert to the landowner—factors that affect cash flow, property value, and resale risk.

special committee regulatory

"the Company’s proposed investment was evaluated and approved by the Board"

A special committee is a group of people chosen by an organization to carefully examine a specific issue or problem, often when a decision could have significant consequences. Think of it as a task force brought together to investigate and recommend actions, ensuring that important matters are handled thoroughly and fairly. For investors, this means decisions are made with careful oversight, which can impact the organization's stability and future direction.

cumulative preferred stock financial

"8.00% Cumulative Preferred Stock, Series A"

Cumulative preferred stock is a type of share that pays fixed dividends and creates an obligation for the company to repay any missed dividend payments later; if the firm skips a dividend, those unpaid amounts build up like an IOU and must be paid to these shareholders before common shareholders receive dividends. Investors care because it offers steadier income and higher priority in the payout order, making it less risky than common stock but still subject to company solvency and interest-rate shifts.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Company plans to change its name to FG Communities Holdings, Inc.

Charlotte, NC, Sept. 16, 2026 (GLOBE NEWSWIRE) -- 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 Housing

The 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 Changes

In 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.

About FG Nexus

FG Nexus (Nasdaq: FGNX, FGNXP) is a merchant bank and real estate focused operating company.

The FGNX^® logo is a registered trademark.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are entitled to the protection of the safe-harbor provisions of those laws.

Forward-looking statements include statements concerning the closing and anticipated benefits of the Company’s proposed investment in FG Communities; the Company’s strategy to make direct investments in affordable housing communities; the acquisition, ownership, operation and financing of manufactured housing communities; the use of cash, debt financing and proceeds from common-stock issuances to fund acquisitions; the proposed corporate name and ticker-symbol changes; future share repurchases; the Company’s acquisition pipeline and growth strategy; and the anticipated size and long-term characteristics of the manufactured housing market.

These statements are based on management’s current expectations, assumptions, estimates and projections and involve risks and uncertainties, many of which are beyond the Company’s control. Actual results could differ materially from those expressed or implied by these statements.

Relevant risks include, among others, the Company’s ability to complete the proposed investment on anticipated terms; obtain required corporate, regulatory and Nasdaq approvals; successfully identify, finance, complete and integrate property acquisitions; obtain debt or equity financing on acceptable terms; manage leverage and potential dilution from equity issuances; realize anticipated operating and financial benefits; maintain adequate liquidity; and appropriately manage potential conflicts of interest arising from related-party transactions.

Additional risks are described in the Company’s filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of this release. The Company undertakes no obligation to update or revise any forward-looking statement except as required by law.

Contacts

Media Contact
media@fgnexus.io

Investor Contact
invest@fgnexus.io

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How will FG Nexus execute its affordable housing real estate strategy?

The strategy has two components: direct acquisitions of real property with land-lease affordable housing communities by the company itself, and an indirect investment via the $10 million minority stake in FG Communities, which will continue to operate independently under its own management.

How does FG Nexus plan to fund its direct property acquisitions?

The company expects to fund direct acquisitions using a combination of cash on hand, debt financing and proceeds from issuances of its common stock, with the structure of each deal depending on property characteristics, market conditions and capital-allocation priorities.

What governance steps were taken regarding the related-party investment in FG Communities?

Certain officers and directors, including Chairman and CEO Kyle Cerminara, hold significant equity positions in and serve as officers and directors of FG Communities. Because of these affiliations, the proposed $10 million investment was reviewed and recommended by a Special Committee composed solely of independent directors, with input from an independent financial advisor, before approval by the full Board.

Will FG Communities be controlled by FG Nexus after the investment?

No. FG Communities will remain a separate, independently operated company, and the planned corporate name, FG Communities Holdings, Inc., does not reflect majority ownership or control of FG Communities.

What name and ticker changes are planned, and when will they take effect?

The company plans to change its corporate name to FG Communities Holdings, Inc., its common stock ticker from FGNX to FGC, and its 8.00% Cumulative Preferred Stock, Series A, ticker from FGNXP to FGCPP. These changes are expected to become effective soon, subject to completion of applicable corporate filings and confirmation by Nasdaq. Until then, the securities will continue trading under FGNX and FGNXP.

Do existing FG Nexus stockholders need to take any action for the name or ticker changes?

No action is expected to be required from existing stockholders in connection with the company’s planned corporate name or ticker-symbol changes.