Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 117

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 117
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 and 2023, respectively. As of the date of this proxy statement/prospectus, none of PubCo, Scage International and its subsidiaries has made any dividends or distributions to their respective shareholder(s), including any U.S. investors, nor do they have any present plan to pay any cash dividends in the foreseeable future. Any determination to pay dividends in the future will be at the discretion of the respective board of PubCo and Scage International. As of the date of this proxy statement/prospectus, none of Scage International, PubCo and the PRC Subsidiaries intends to distribute earnings. As of the date of this proxy statement/prospectus, there is no amount owed among PubCo, Scage International and the PRC Subsidiaries. PubCo and Scage International are not subject to any restrictions under Cayman Islands law on dividend distribution to their shareholders. Subject to the “passive foreign investment company” rules and following the Business Combination, the gross amount of any distribution that PubCo makes to a U.S. Holder (as defined in “Material U.S. Federal Income Tax Considerations”) with respect to the PubCo Ordinary Shares (including any amounts withheld to reflect PRC withholding taxes) will be taxable as a dividend for United States federal income tax purposes, to the extent paid out of PubCo’s current or accumulated earnings and profits, as determined under United States federal income tax principles. Scage International, the PRC Subsidiaries and, following the Business Combination, PubCo will be subject to restrictions on foreign exchange and their ability to transfer cash between entities, across borders, and to U.S. investors. Under PRC foreign exchange regulations, payments of current account items, including profit distributions, interest payments and trade and service -relatedforeign exchange transactions, can be made in foreign currencies without prior approval of SAFE by complying with certain procedural requirements. However, approval from or registration with appropriate government authorities is required where Renminbi is to be converted into foreign currency and remitted out of China to pay capital expenses such as the repayment of loans denominated in foreign currencies. The PRC government imposes administrative measures, safeguards and/or controls on the convertibility of Renminbi into foreign currencies and the remittance of funds out of China, which may influence the transfer of cash between Scage International and PubCo following the Business Combination, the PRC Subsidiaries or the investors. Under PRC laws and regulations, the PRC Subsidiaries are subject to certain restrictions with respect