Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 65

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 65
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 Combination will be entitled to receive shares of PubCo in connection with the Business Combination. Q.If I am a Warrant holder, can I exercise redemption rights with respect to my Finnovate Warrants? A.No. The holders of Finnovate Warrants have no redemption rights with respect to such securities. If holders redeem their Finnovate Public Shares at Closing but continue to hold any PubCo Public Warrants after the Closing, the aggregate value of the PubCo Public Warrants that may be retained by them, based on the closing trading price per Public Warrant as of November 11, 2024, would be approximately US$156,617 regardless of the amount of redemptions by Finnovate Public Shareholders. Q.If I hold only Finnovate Warrants, what are the U.S. federal income tax consequences of my Finnovate Warrants converting into Assumed Warrants? A.If the Business Combination qualifies as a “reorganization” under Section 368 of the Code as well as a Section 351 exchange, a U.S. holder whose Finnovate Warrants automatically convert into Assumed Warrants should not recognize gain or loss upon such exchange. In such case, a U.S. holder’s adjusted tax basis in the Assumed Warrants received should be equal to the holder’s adjusted tax basis in the Finnovate Warrants exchanged therefor, and the holding period of the Assumed Warrants should include the holding period during which the Finnovate Warrants exchange therefor were held by such holder. However, it is unclear whether the requirements of Section 368 of the Code can be satisfied. xxxiii 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 only Finnovate Warrants that automatically convert into Assumed Warrants should recognize gain or loss upon such exchange equal to the difference between the fair market value of the Assumed Warrants received and such U.S. holder’s adjusted basis in its Finnovate Warrants. A U.S. holder’s basis in its Assumed Warrants received in the Business Combination should equal the fair market value of the Assumed Warrants. A U.S. holder’s holding period in its Assumed Warrants should begin on the day after the Business Combination. For additional discussion of the U.S. federal income tax treatment of Finnovate Warrants in connection with the Business Combination, see the section entitled “Material U.S.