Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 493

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 493
---
 foreign tax credit. Exercise or Lapse of an Assumed Warrant A U.S. holder generally will not recognize gain or loss upon the acquisition of a PubCo Ordinary Share on the exercise of an Assumed Warrant for cash. A U.S. holder’s initial tax basis in its PubCo ADSs received upon exercise of the Assumed Warrant generally would be an amount equal to the sum of the U.S. holder’s tax basis in Assumed Warrant exercised therefor and the exercise price. The U.S. holder’s holding period for a PubCo Ordinary Share received upon exercise of the Assumed Warrant will begin on the date following the date of exercise (or possibly the date of exercise) of the Assumed Warrant and will not include the period during which the U.S. holder held the Assumed Warrant. If an Assumed Warrant is allowed to lapse unexercised, a U.S. holder generally will recognize a capital loss equal to such holder’s tax basis in the Assumed Warrant. 251 The tax consequences of a cashless exercise of an Assumed Warrant are not clear under current tax law. Subject to the PFIC rules discussed under “—Passive Foreign Investment Company Rules” below, a cashless exercise may be tax -deferred, either because the exercise is not a gain realization event or because the exercise is treated as a recapitalization for U.S. federal income tax purposes. In either situation, a U.S. holder’s basis in the PubCo ADSs received would equal the holder’s basis in the Assumed Warrants exercised therefor. If the cashless exercise were treated as not being a gain realization event, a U.S. holder’s holding period in the PubCo ADSs would be treated as commencing on the date following the date of exercise (or possibly the date of exercise) of the Assumed Warrants. If the cashless exercise were treated as a recapitalization, the holding period of the PubCo ADSs would include the holding period of the Assumed Warrants exercised therefor. It is also possible that a cashless exercise of an Assumed Warrant could be treated in part as a taxable exchange in which gain or loss would be recognized in the manner set forth under “—Sale, Exchange, or Other Taxable Disposition of PubCo ADSs and Assumed Warrants .”In such event, a U.S. holder could be deemed to have surrendered warrants having an aggregate fair market value equal to the exercise price for