Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 173

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 173
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 -of -controltransaction in which a foreign 60 investor takes control of a PRC domestic enterprise. Moreover, the Anti -monopolyLaw promulgated by the SCNPC requires that transactions which are deemed concentrations and involve parties with specified turnover thresholds must be cleared by the anti -monopolyenforcement agency before they can be completed. In addition, the Measures for the Security Review of Foreign Investment promulgated by the NDRC and MOFCOM in December 2020 specify that foreign investments in military, national defense -relatedareas or in locations in proximity to military facilities, or foreign investments that would result in acquiring the de facto control over domestic enterprises in certain key sectors, such as critical agricultural products, energy and resources, equipment manufacturing, infrastructure, transport, cultural products and services, information technology, internet products and services, financial services and technology sectors, are required to obtain approval from designated government authorities in advance. In the future and after the consummation of the Business Combination, PubCo may pursue potential strategic acquisitions that are complementary to its business. Complying with the requirements of the above -mentionedregulations and other rules to complete such transactions could be time -consuming, and any required approval processes may delay or inhibit our ability to complete such transactions, which could affect PubCo’s ability to expand business or maintain market share. Furthermore, there is a possibility that the PRC regulators may promulgate new rules or explanations requiring that PubCo obtain the approval of MOFCOM or other PRC government authorities for its mergers and acquisitions. We cannot assure you that PubCo can obtain such approval from MOFCOM or any other relevant PRC government authorities for its mergers and acquisitions. Any non -compliancewith such approval requirements could have a material adverse effect on PubCo’s business, results of operations and corporate structure following the consummation of the Business Combination. PRC regulations of loans to and direct investment in PRC entities by offshore holding companies and legal requirements and procedures of currency conversion may delay or prevent Scage International, and PubCo following the consummation of the Business Combination, from using proceeds from offshore fund-raising activities, to make loans or additional capital contributions to the PRC Subsidiaries, which could materially and adversely affect the liquidity of Scage International and PubCo, as well as Scage International’s ability to fund and expand its business. Any funds Scage International transfers to the PRC Subsidiaries, either as shareholder loans or as an increase in registered capital, are