Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 497

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 497
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 and (ii) any “excess distribution” you receive on your PubCo ADSs (generally, any distributions in excess of 125% of the average of the annual distributions on PubCo ADSs during the preceding three years or your holding period, whichever is shorter). Generally, under this excess distribution regime: a.the gain or excess distribution will be allocated ratably over the period during which you held your PubCo ADSs or Assumed Warrants; b.the amount allocated to the current taxable year and any taxable year prior to the first taxable year in which PubCo is a PFIC, will be taxed as ordinary income; and c.the amount allocated to each of the other taxable years will be subject to the highest tax rate in effect for that taxable year and the interest charge generally applicable to underpayments of tax will be imposed on the resulting tax attributable to each such year. The tax liability for amounts allocated to years prior to the year of disposition or excess distribution will be payable generally without regard to offsets from deductions, losses and expenses. In addition, gains (but not losses) realized on the sale of your PubCo ADSs or Assumed Warrants cannot be treated as capital gains, even if you hold the shares as capital assets. Further, no portion of any distribution will be treated as QDI. For purposes of the foregoing rules, the holding period of PubCo ADSs received upon an exercise of Assumed Warrants will generally include the U.S. holder’s holding period in the warrant. QEF Regime.If PubCo is a PFIC, a U.S. holder of PubCo ADSs (but not Assumed Warrants) may avoid taxation under the excess distribution rules described above by making a QEF election. However, a U.S. holder may make a QEF election with respect to its PubCo ADSs only if PubCo provides U.S. holders on an annual basis with 253 certain financial information specified under applicable U.S. Treasury Regulations. Because PubCo currently does not intend to provide U.S. holders with such information on an annual basis, U.S. holders generally would not be able to make a QEF election with respect to the PubCo ADSs. Mark -to -Market Regime.Alternatively, a U.S. holder of PubCo ADSs (but not Assumed Warrants) may also avoid taxation under the excess distribution rules by making a mark -to -marketelection. The mark -to -marketelection is available only for “marketable stock,”