Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 276

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 276
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|                        |     | East Stone Capital Limited                        |     | Private equity firm                           |     | Managing Director |
| Tiemei (Sarah) Li      |     | Finnovate Acquisition Corp                        |     | Special purpose acquisition company           |     | Director          |
|                        |     | Telfer School of Management, University of Ottawa |     | Education                                     |     | Professor         |
| Sanjay Prasad          |     | Finnovate Acquisition Corp                        |     | Special purpose acquisition company           |     | Director          |
|                        |     | Global Business Dimensions Inc.                   |     | Hardware manufacturer, seller and distributor |     | CEO and President |

In evaluating the conflicts of interest referenced above, the Finnovate Board concluded that the potentially disparate interests would be mitigated because (i) certain of these interests were disclosed in the prospectus for Finnovate’s IPO and are disclosed in this proxy statement/prospectus, (ii) most of these disparate interests would exist with respect to a business combination by Finnovate with any other target business or businesses, and (iii) the Sponsor will hold equity interests in PubCo with value that, after the Closing, will be based on the future performance of PubCo’s stock. After considering the foregoing, the Finnovate Board concluded, in its business judgment, that the potential benefits to Finnovate and its shareholders relating to the Business Combination outweighed the potentially negative factors and risks relating to the Business Combination. The Finnovate Board’s reasons for approving the Business Combination were still applicable upon the approval of the First Amendment to the Business Combination Agreement, including the reduced valuation. After considering a new set of circumstances in June 2024 regarding the uncertainties, risks and other potentially negative reasons relevant to the Business Combination, the Finnovate Board concluded, in its business judgment, that the potential benefits to Finnovate and its shareholders relating to the Business Combination outweighed the potentially negative factors and risks relating to the Business Combination. Certain Unaudited Projected Financial Information In connection with Finnovate’s due diligence and consideration of the potential business combination with Scage International, Scage International’s management provided Finnovate with two sets of certain financial forecasts, including four year forecasted revenues, reflecting the multi -prongedbusiness model that Scage International is pursuing. An in -houseteam at Scage International led by Interim CFO Yuanchi Guo prepared the Initial Financial Projections based on a number of assumptions, as further described below.