Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 171

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 171
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 cash or assets are in Hong Kong or a Hong Kong entity, such funds or assets may not be available due to interventions in or the imposition of restrictions and limitations on PubCo’s ability to transfer funds or assets by 59 the PRC government. Furthermore, we cannot assure you that the PRC government will not intervene or impose restrictions on PubCo and its subsidiaries to transfer or distribute cash within the organization, which could result in an inability of or prohibition on making transfers or distributions to entities outside of mainland China and Hong Kong. Furthermore, after the consummation of the Business Combination, if PubCo’s PRC subsidiaries incur debt on their own behalf in the future, the instruments governing their debt may affect their ability to pay dividends or make other distributions to PubCo. Any limitation on the ability of PubCo’s PRC subsidiaries to pay dividends or make other distributions to PubCo could materially and adversely limit its ability to grow, make investments or acquisitions that could be beneficial to PubCo’s business, pay dividends, or otherwise fund and conduct its business. The Enterprise Income Tax Law enacted by the National People’s Congress, which became effective on January 1, 2008, and its implementation rules provide that a withholding tax at a rate of 10% will be applicable to dividends payable by Chinese companies to non -PRC -residententerprises unless reduced under treaties or arrangements between the PRC central government and governments of other countries or regions where the non -PRCresident enterprises are tax resident. See “—If Scage International and/or PubCo are classified as PRC resident enterprises for PRC income tax purposes, such classification could result in unfavorable tax consequences to Scage International, PubCo and their non -PRCshareholders or warrant holders.” After the consummation of the Business Combination, any restriction on currency exchange may limit the ability of PubCo’s PRC subsidiaries to use their Renminbi revenues to pay dividends to PubCo. The PRC government may continue to strengthen its capital controls or management and PRC subsidiaries’ dividends and other distributions to PubCo after the consummation of the Business Combination may be subject to tightened scrutiny in the future. Any limitation on the ability of PubCo’s PRC subsidiaries to pay dividends or make other distributions to PubCo after the consummation of the Business Combination could materially and adversely limit its ability to grow, make investments or acquisitions that could be beneficial to its business, pay dividends, or otherwise fund and conduct its business. Restrictions on the remittance of Renminbi into