Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 217

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 217
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ate Public Shareholders may not be able to sell their securities when they wish to, even while other shareholders that did not seek conversion may be able to sell their securities. On and prior to the Closing Date, the trading price per share value of Finnovate Class A Ordinary Shares may be less than the per share value of the Trust Account. In addition, the net cash per Finnovate Class A Ordinary Share (taking into account the Founder Shares and Representative Shares) is less than the amount in trust per share available to any redeeming public shareholders. Although the parties to the Business Combination agreed the consideration to be provided to PubCo shareholders was valued at a price equal to the per share amount in the Trust Account at the time of the execution of the Business Combination Agreement, the cash backed value per Finnovate Class A Ordinary Share following the Business Combination may be substantially less than such per share price. Accordingly, Public Shareholders who do not exercise redemption rights will hold shares that will have a value to them ascribed by their trading price as of two business days prior to the Shareholder Meeting, which may be substantially less than the amount they would have received upon exercise of redemption rights. In particular, the shares of most companies that are the result of a recently completed business combinations between a SPAC and an operating company have traded at prices substantially below $10.00 per share. As such, Public Shareholders who do not exercise redemptions right may hold securities that never obtain a value equal to or exceeding the current per share value of the Trust Account. Furthermore, the net cash per Finnovate Class A Ordinary Share (taking into account the Founder Shares and Representative Shares is less than the amount in trust per share available to redeeming Public Shareholders. 82 Finnovate’s shareholders may be held liable for claims by third parties against Finnovate to the extent of distributions received by them upon redemption of their shares. If Finnovate is forced to enter into an insolvent liquidation, any distributions received by shareholders could be viewed as an unlawful payment if it was proved that immediately following the date on which the distribution was made, Finnovate was unable to pay Finnovate’s debts as they fall due in the ordinary course of business. As a result, a liquidator could seek to recover all amounts received by Finnovate’s shareholders. Furthermore, Finnovate’s directors may be viewed as having breached their fiduciary duties to Finnovate or Finnovate’s creditors or may have acted in bad faith, and thereby