Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 267

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 267
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 International’s valuation and include an earn -outwith a portion of the consideration being issuable at a future date upon the achievement of certain revenue targets. On April 8, 2024, Ms. Xiang conveyed to Mr. Kung the desire of Mr. Gao to maintain the merger consideration and on April 10, 2024, Finnovate and EBC teams held a call to discuss valuation again. On April 11, 2024, Mr. Kung expressed Finnovate and EBC’s concern about Scage International’s US$1,000,000,000 valuation and Mr. Gao suggested that valuation should not be revised until the working group had clearly addressed the matter of securing a PIPE investment. Mr. Gao noted that, at present, the working group’s process of seeking regulatory approval was proceeding smoothly and should not be interrupted. On April 19, 2024, during a call between representatives of EBC, Finnovate and Scage International, Mr. Gao was receptive to EBC’s concerns but sought to defer further discussions on this matter until after he and other working group members returned from a business development trip with investors in the Middle East. On May 8, 2024, in a meeting between EBC and Scage International’s Mr. Guan, Mr. Guo, and Ms. Wang, representatives of EBC again conveyed EBC’s concern regarding valuation. Mr. Guo updated the EBC team on Scage International’s sales backlog and the process of securing commitments from PIPE investors. During the week of May 13, 2024, Ms. Xiang began further updating the company’s projections to reflect Scage International’s sales backlog and feedback from other employees regarding Scage International’s performance for the fiscal year ended June 30, 2024. During a series of brief calls that week, Ms. Xiang and Ms. Wang conveyed this information to Mr. Kung and 3A Partners’ Mr. Wang. On May 18, 2024, representatives of Finnovate, Scage International and 3A Partners held a call, during which all parties agreed to lower the valuation component of the BCA’s Aggregate Merger Consideration from US$1,000,000,000 to US$800,000,000, with such proposal to be approved by the respective boards. On May 19, 2024, Mr. Kung sent an email to the Finnovate Board to update the directors