Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 235

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 235
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 may deprive you of an opportunity to receive a premium for PubCo ADSs and materially reduce the value of your investment. Mr. Chao Gao (by himself and by virtue of an acting -in-concertagreement) will beneficially own 45,441,182 PubCo Ordinary Shares and will be able to exercise 62.4% of the total voting power of the total issued and outstanding share capital of PubCo immediately following the completion of the Business Combination assuming no conversion of the Company’s convertible bonds and no redemption of Finnovate Public Shares, pursuant to certain acting -in -concertagreement entered into among Upward Stars Group Limited, Two Courage Brothers Limited, Three Action Brothers Limited, Victorious Lights Holding Limited, Five Epic Brother Limited and Four Genuine Brothers Limited. This concentration of ownership and the protective provisions in the PubCo A&R MAA, which will become effective upon the completion of the Business Combination, may discourage, delay or prevent a change in control of PubCo, which could have the dual effect of depriving PubCo’s shareholders of an opportunity to receive a premium for their shares as part of a sale of PubCo and reducing the price of the PubCo ADSs. As a result of the foregoing, the value of your investment could be materially reduced. The issuance of additional share capital in connection with financings, acquisitions, investments, PubCo’s equity incentive plans or otherwise will dilute all other shareholders. PubCo expects to issue additional share capital in the future, which will result in dilution to all other shareholders. PubCo also expects to adopt a share incentive plan and grant equity awards to key employees. PubCo may also raise capital through equity financings in the future. As part of PubCo’s business strategy, it may acquire or make investments in companies, solutions or technologies and issue equity securities to pay for any such acquisition or investment. Any such issuances of the additional share capital may cause shareholders to experience significant dilution of their ownership interests and the per share value of PubCo ADSs to decline. PubCo does not intend to pay dividends before it becomes profitable, and as a result, your ability to achieve a return on your investment in the foreseeable future will depend on appreciation in the price of the PubCo ADSs. PubCo does not intend to pay any cash dividends before it becomes profitable, which may not occur in the foreseeable future. Any determination to pay dividends in the future will be at the discretion of PubCo’s board of directors. Accordingly, you may need to