Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 490

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 490
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 reduction in a U.S. holder’s proportionate interest in Finnovate will depend on the particular facts and circumstances. However, the IRS has indicated in a published ruling that even a small reduction in the proportionate interest of a small minority stockholder in a publicly held corporation who exercises no control over corporate affairs may constitute such a “meaningful reduction.” A U.S. holder should consult with its own tax advisors as to the tax consequences of redemption. If the redemption qualifies as a sale of stock by the U.S. holder under Section 302 of the Code, the U.S. holder generally will be required to recognize gain or loss in an amount equal to the difference, if any, between the amount of cash received and the tax basis of the Finnovate Ordinary Shares redeemed. Such gain or loss should be treated as capital gain or loss if such shares were held as a capital asset on the date of the redemption. A U.S. holder’s tax basis in such holder’s shares of Finnovate Ordinary Shares generally will equal the cost of such shares. A U.S. holder that purchased Finnovate Units would have been required to allocate the cost between the shares of Finnovate Ordinary Shares and the Finnovate Warrants comprising the Finnovate Units based on their relative fair market values at the time of the purchase. If the redemption does not qualify as a sale of stock under Section 302 of the Code, then the U.S. holder will be treated as receiving a corporate distribution. Such distribution generally will constitute a dividend for U.S. federal income tax purposes to the extent paid from current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Distributions in excess of current and accumulated earnings and profits will constitute a return of capital that will be applied against and reduce (but not below zero) the U.S. holder’s adjusted tax basis in such U.S. holder’s Finnovate Ordinary Shares. Any remaining excess will be treated as gain realized on the sale or other disposition of the Finnovate Ordinary Shares. Special rules apply to dividends received by U.S. holders that are taxable corporations. After the application of the foregoing rules, any remaining tax basis of the U.S. holder in the redeemed Finnovate Ordinary Shares will be added to the U.S. holder’s adjusted tax basis in its remaining Finnovate Ordinary Shares, or, to the basis of Finnovate Ordinary Shares constructively owned by such holder if the stock actually owned by the holder is completely redeemed. Ownership and Dis