Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 269

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 269
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 market conditions and explore strategies for Scage to optimally position itself within the current investment landscape. Scage International was introduced to certain potential PIPE investors by its existing shareholders in November 2023. Scage International underwent certain virtual business and financial performance due diligence processes with these potential investors during the period from January 2024 to August 2024, and held conference calls with such potential investors to discuss, among others, the Business Combination and Scage International’s operations and business prospects. Following extensive negotiations, Scage International entered into subscription agreements with an investor on August23, 2024 and October20, 2024, respectively, and pursuant to the subscription agreements, the investor subscribed for 3,442,342 ordinary shares of Scage International in a private placement transaction at a per share price of US$5.81, which represented the per share price of the ordinary shares of Scage International based on a post -investmentvaluation of Scage International of US$800million in line with evaluation of Scage International in connection with the Business Combination. Such shares subscribed by the investor will be cancelled and converted into the right to receive a number of PubCo Ordinary Shares at the Exchange Ratio (as defined in the Business Combination Agreement) in the form of PubCo ADSs at the First Merger Effective Time pursuant to the Business Combination Agreement. Scage International closed the two investments on November19, 2024. Scage International intends to use the proceeds from such financing transactions for operating and working capital purposes. The private placement transactions pursuant to the subscription agreements will satisfy the closing condition of the Business Combination Agreement that the cash proceeds from the PIPE Investment shall not be less than an aggregate of US$15million. Each of Finnovate and Scage International considered the benefits and detriments of the above -referencedfinancing transactions to Finnovate, the sponsor, Scage International, and unaffiliated security holders of the SPAC. Finnovate believes that the estimated $20million in net proceeds is instrumental in providing sufficient runway for the combined company to pay transaction expenses incurred in the Business Combination and to achieve its near -termgoals. Such financings would ensure that Finnovate can complete its mission to consummate a business combination, and for Finnovate’s shareholders to realize their investment in the combined company. Finnovate also considered potential dilution from the financings as a potential negative aspect to Finnovate shareholders. In reachingits decision to approve the financing transactions in connection with the Business Combination, Scage International