Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 106

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 106
---
 the prior three -yearperiod. References herein to “emerging growth company” have the meaning associated with it in the JOBS Act. Material Financing Transactions Scage International entered into subscription agreements with an investor on August23, 2024 and October20, 2024, respectively, and pursuant to the subscription agreements, the investor subscribed for 3,442,342 ordinary shares of Scage International in a private placement transaction at a per share price of US$5.81, which represented the per share price of the ordinary shares of Scage International based on a post -investmentvaluation of Scage International of US$800million in line with evaluation of Scage International in connection with the Business Combination. Such shares subscribed by the investor will be cancelled and converted into the right to receive a number of PubCo Ordinary Shares at the Exchange Ratio (as defined in the Business Combination Agreement) in the form of PubCo ADSs at the First Merger Effective Time pursuant to the Business Combination Agreement. Such conversion will not have dilutive impact on the shareholders of Finnovate prior to the Closing, as the subscriber will initially receive ordinary shares of Scage International and only upon the Closing will they receive PubCo Ordinary Shares, which shares will be included in the 17 PubCo Ordinary Shares issued upon the Closing to Scage International shareholders. Upon the Closing, the approximate dilution from the Business Combination (including the shares issued to the subscriber) will be approximately $0.28 per share. See “Summary—Questions and Answers about the Business Combination and the Extraordinary General Meeting—What equity stake will current Finnovate Public Shareholders, the Sponsor and the Scage International shareholders and their affiliates hold in PubCo immediately after the completion of the Business Combination?” for more information. Scage International closed the two investments on November19, 2024. Scage International intends to use the proceeds from such financing transactions for operating and working capital purposes. The private placement transactions pursuant to the subscription agreements will satisfy the closing condition of the Business Combination Agreement that the cash proceeds from the PIPE Investment shall not be less than an aggregate of US$15million. Each of Finnovate and Scage International considered the benefits and detriments of the above -referencedfinancing transactions to Finnovate, the sponsor, Scage International, and unaffiliated security holders of the SPAC. Finnovate believes that the estimated $20million in net proceeds is instrumental in providing sufficient runway for the combined company to pay transaction expenses incurred in the Business Combination