Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 266

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 266
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 3A Partners Limited, which clarified 3A Partners Limited’s obligations pursuant to the agreement. During the week of November 6, 2023, Ms. Yu (Cherry) Xiang joined Scage International as Chief Financial Officer. On January 8, 2024, Scage Future confidentially submitted the draft registration statement on Form F -4of which this prospectus forms a part (the “DRS”) to the SEC. On February 6, 2024, SEC Staff provided comments to the DRS and on March 8, 2024, an amendment to the DRS was filed, which included edits in response to the SEC Staff comments. 109 Beginning in early March 2024, Finnovate began receiving robust information from Scage International regarding Scage International’s financial performance for the six months ended December 31, 2023. This information arose from the Scage International’s process of preparing interim financial statements for the same time period. During the six months ended December 31, 2023 and the three months ending March 31, 2024, Scage International continued to receive purchase orders and signed MOUs. However, the actual amount of revenue recognized during the six months ended December 31, 2023 was significantly lower than the projected amount. Based upon the updated information and changes to some estimations and assumptions included in the Initial Projections, Scage International’s CFO, Ms. Xiang, proceeded to update the financial projections and shared a first copy with Finnovate on March 15, 2024. These draft updated financial projections included historical information that suggested that Scage International’s revenue for the six months ended December 31, 2023 would be approximately RMB 24 million, which was well below the revenue originally projected for that time period. Upon receiving the draft projections, Mr. Kung discussed with certain Finnovate Board members as to the potential impact of the changes in projections on valuation. On March 21, 2024, the working group received the SEC Staff comments to Amendment No. 1 to the DRS. On March 27, 2024, Mr. Kung spoke with representatives of EBC. EBC expressed concern about Scage International’s valuation, noting that the post business combination entity’s stock price could suffer if the valuation was retained and suggested that Finnovate either amend the terms of the BCA to either (i) reduce Scage International’s valuation; or (ii) reduce Scage