Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 29

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 3
Chunk 29
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 PRC
regulatory agencies in 2006 and amended in 2009, an offshore special purpose vehicle (“ SPV”) that is controlled by PRC domestic
companies or individuals and that has been formed for the purpose of an overseas listing of securities through acquisitions of PRC domestic
companies (which refer to non-foreign-invested enterprise in the PRC under the M& A Rules) or assets is required to obtain the approval
of the CSRC prior to the listing and trading of such special purpose vehicle’s securities on an overseas stock exchange. However,
substantial uncertainty remains regarding the scope and applicability of the M& A Rules to offshore special purpose vehicles. Our
PRC counsel, Jingtian & Gongcheng, has advised us based on their understanding of the current PRC laws, regulations and rules
that, because the PRC subsidiaries were all foreign-invested enterprises or reinvested enterprises, which are not PRC domestic companies
under the M& A Rules, at the time they were acquired by the relevant offshore special purpose vehicles, the CSRC’s approval
under the M& A Rules is not required for the listing and trading of Company ADSs and Assumed Warrants on the Nasdaq Stock Market in
the context of this Business Combination.

However, our PRC counsel
has further advised us that it remains uncertain as to how the M& A Rules will be interpreted or implemented in the context of an
overseas offering and its opinions summarized above are subject to any new laws, regulations and rules or detailed implementations and
interpretations in any form relating to the M& A Rules. We cannot assure you that relevant PRC government agencies, including the
CSRC, might further clarify or interpret the M& A Rules in writing or orally and require their approvals to be obtained for the Business
Combination in the future. We cannot assure you that relevant PRC government agencies, including the CSRC, would reach the same conclusion
as our PRC counsel does. If it is determined that CSRC approval under the M& A Rules is required for this Business Combination, we
may face investigation and penalties by the CSRC or other PRC regulatory agencies for failure to obtain or delay in obtaining CSRC approval
for this offering, which may materially and adversely affect our business, financial condition, and results of operations.

Furthermore, the PRC regulatory
authorities have recently exerted more oversight and control over overseas securities offerings that are conducted by China-based companies,
and overseas investments