Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 201

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 201
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 liquidity for its securities; •a determination that the PubCo Ordinary Shares are considered a “penny stock,” which will require brokers trading in PubCo Ordinary Shares are to adhere to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading market for its securities; •a limited amount of news and analyst coverage; •a decreased ability to issue additional securities or obtain additional financing in the future. The National Securities Markets Improvement Act of 1996, which is a federal statute, prevents or preempts the states from regulating the sale of certain securities, which are referred to as “covered securities.” Although the states are preempted from regulating the sale of our securities, the federal statute does allow the states to investigate companies if there is a suspicion of fraud, and, if there is a finding of fraudulent activity, then the states can regulate or bar the sale of covered securities in a particular case. While we are not aware of a state having used these powers to prohibit or restrict the sale of securities issued by blank check companies, other than the state of Idaho, certain state securities regulators view blank check companies unfavorably and might use these powers, or threaten to use these powers, to hinder the sale of securities of blank check companies in their states. Further, since we are no longer listed on Nasdaq, our securities would not be covered securities and we would be subject to regulation in each state in which we offer our securities. 74 There are risks to Finnovate’s shareholders who are not affiliates of the Sponsor of becoming shareholders of PubCo through the Business Combination rather than acquiring securities of Scage International directly in an underwritten public offering, including no independent due diligence review by an underwriter and conflicts of interest of the Sponsor. PubCo has applied to list the PubCo ADSs and the PubCo Warrants on Nasdaq upon the Closing under the symbols “SCAG” and “SCAGW,” respectively. Because there is no independent third -partyunderwriter involved in the Business Combination or the issuance of PubCo’s securities in connection therewith, investors will not receive the benefit of any outside independent review of Finnovate’s and Scage International’s respective finances and operations. Underwritten public offerings of securities conducted by a licensed broker -dealerare subjected to a due diligence review by the underwriter or dealer manager to satisfy statutory duties under the Securities Act, the rules of Financial Industry Regulatory Authority, Inc. (“FINRA”) and the national securities exchange where such securities are listed. Additionally, underwriters or dealer