Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 108

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 108
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 corporate governance committee consisting entirely of independent directors, and (2) have regularly scheduled executive sessions with only independent directors each year. As a result, PubCo’s shareholders may not have the same protection afforded to shareholders of U.S. domestic companies that are subject to Nasdaq corporate governance requirements. Controlled Company Immediately following the completion of the Business Combination, 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 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, assuming no conversion of Scage International’s convertible bonds and no redemption of Finnovate Public Shares. As a result of the Founder’s majority voting power, which would give him the ability to control the outcome of certain matters submitted to PubCo’s shareholders for approval, including the appointment or removal of directors, PubCo will qualify as a “controlled company” within the meaning of the corporate governance standards of Nasdaq Stock Market. For so long 18 as PubCo qualifies as a “controlled company,” it will have the option not to comply with certain requirements to which companies that are not controlled companies are subject, including the requirement that a majority of its board of directors shall consist of independent directors and the requirement that its nominating and corporate governance committee and compensation committee shall be composed entirely of independent directors. PubCo intends to take advantage of these exemptions. For more details on related risks, see “Risk Factors—Risks Related to PubCo’s Securities—PubCo will be a “controlled company” under the Corporate Governance Rules of Nasdaq and can rely on exemptions from certain corporate governance requirements that could adversely affect PubCo’s public shareholders.” Regulatory Matters The Business Combination and the transactions contemplated by the Business Combination Agreement are not subject to any federal or state regulatory requirement or approval, except for (1) the filings and registration with the Cayman Islands Registrar of Companies and the payment of the applicable fees under the Cayman Companies Act necessary to effectuate the Business Combination, and (2) the PRC regulatory permission or filing requirement for the Business Combination as set forth below. PRC Regulatory Permissions for the Business Combination CAC Approval On July 6, 2021, the