Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 484

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 484
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ate, the Company and PubCo. If the letters or certificates are incorrect, the conclusions reached in the tax opinion could be jeopardized. In addition, the opinion will be subject to certain qualifications and limitations as set forth therein. Assuming such qualification as an exchange described in Section 351(a) of the Code, a U.S. holder that receives PubCo ADSs in exchange for Finnovate Ordinary Shares or Company Ordinary Shares in the Business Combination will not recognize any gain or loss on such exchange. In such case, the aggregate adjusted tax basis of the PubCo ADSs received in the Business Combination by a U.S. holder will be equal to the adjusted tax basis of the Finnovate Ordinary Shares or Company Ordinary Shares exchange therefor. The holding period of the PubCo ADSs will include the holding period during which the Finnovate Ordinary Shares or Company Ordinary Shares exchange therefor were held by such U.S. holder. The appropriate U.S. federal income tax treatment of Finnovate Warrants received in the Business Combination is uncertain because, as described below, it is unclear whether the Mergers, in addition to qualifying as an exchange described in section 351(a) of the Code, will also qualify as a “reorganization” under Section 368 of the Code. There are many requirements that must be satisfied in order for the Business Combination to qualify as a “reorganization” under Section 368 of the Code, some of which are based upon factual determinations and others are fundamental to corporate reorganizations. For example, it is unclear as a matter of law whether an entity that may not have a historic business, such as Finnovate, can satisfy the “continuity of business enterprise” requirement under Section 368 of the Code. In addition, reorganization treatment could be adversely affected by events or actions that occur prior to or at the 247 time of the Business Combination, some of which are outside the control of Finnovate. For example, the requirements for reorganization treatment could be affected by the magnitude of Finnovate Ordinary Share redemptions that occur in connection with the Business Combination. As a result, Finnovate’s counsel is unable to opine whether the Business Combination qualifies as a reorganization under Section 368 of the Code. If the Business Combination qualifies as an exchange governed only by Section 351 of the Code (and not by section 368 of the Code), a U.S. holder that holds no Finnovate Ordinary Shares and whose Finnovate Warrants automatically convert into Ass