Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 40

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 40
---
ptions that occur in connection with the Business Combination. As a result, Finnovate’s counsel is unable to opine whether the Business Combination qualifies as a reorganization under Section 368 of the Code. Even if the Business Combination otherwise qualifies as an exchange described in Section 351(a) of the Code and/or as a reorganization under Section 368 of the Code, U.S. holders may be required to recognize gain (but not loss) on account of the application of the Passive Foreign Investment Company rules, as described in more detail under “Material U.S. Federal Income Tax Consideration—U.S. Holders—The Business Combination—Application of the Passive Foreign Investment Company Rules to the Transactions.” For additional discussion of the U.S. federal income tax treatment of the Business Combination, see the section entitled “Material U.S. Federal Income Tax Considerations—U.S. Holders—The Business Combination—Tax Consequences of the Business Combination.” Q.What conditions must be satisfied or waived to complete the Business Combination? A.The obligations of the parties to consummate the Business Combination is subject to various conditions, including the following mutual conditions of the parties. Any of the conditions to a party’s obligation to consummate the Business Combination set forth in the Business Combination Agreement, if legally permitted, may be waived by such party. These conditions include: (1) the approval of the Business Combination Agreement and the Business Combination and related matters (including the Mergers) by the requisite vote of Finnovate’s and Scage International’s shareholders; (2) obtaining material regulatory approvals; (3) receipt of specified third party consents from any bank that has granted a valid credit facility to Scage International or any notifications to be made to any such bank; (4) no law or order preventing or prohibiting the Business Combination; (5) Finnovate or PubCo shall have consolidated net tangible assets of at least US$5,000,001 (as calculated and determined in accordance with Rule 3a51 -1(g)(1) of the Exchange Act) either immediately prior to the Closing (after giving effect to the Redemption) or upon the Closing after giving effect to the Mergers (including the Redemption), or xvi PubCo otherwise is exempt from the provisions of Rule 419 promulgated under the Exchange Act (i.e. one of several exclusions from the “penny stock” rules of the SEC applies and Finnovate relies on another exclusion); (6) amendment by the shareholders of PubCo of Pub