Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 260

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 260
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) post -closingboard composition of seven board members, with two of such board members appointed by Finnovate and the remainder by Scage International; (iv) an initial timeline for completing the project; and (v) proposed transaction consideration to Scage International’s security holders consisting of newly issued shares 106 of Finnovate Class A Common Stock with an aggregate value of at least US$500 million, subject to adjustment for Scage International’s closing indebtedness (net of cash). The proposed transaction consideration to Scage International’s security holders was proposed by Finnovate management to Scage International’s management and subsequently discussed between the parties prior to executing the Term Sheet. The Term Sheet’s proposed transaction consideration was based on Scage International’s (i) valuation at previous rounds of equity financing; and (ii) ability to achieve increased production capacity and breakthrough growth in sales revenue. At the time term sheet negotiations began, Scage International’s most recent Series A round of equity financing had taken place in September 2022 at a valuation of $180 million. By January 2023, Scage International’s management team had begun new financing discussions with potential investors to complete a round of financing at a valuation of $300 million. By May 2023, Scage International’s management team had begun preliminary discussions with two more municipal governments in China beyond its home province of Jiangsu Province to develop production capacity. In addition, Scage’s management team was actively introducing its offerings to new potential customers in the Southeast Asia and the Middle East markets, whose feedback suggested strong product fit for these markets. Between May 8, 2023 and May 13, 2023, Mr. Kung and the Finnovate management team gauged Scage International’s readiness to begin a listing process. In particular, Mr. Kung sought assurances from Mr. Guo that Scage International’s management team understood the importance of restructuring as a prerequisite to listing and the various professional parties that must be engaged to ensure a successful listing process. During this time, Mr. Kung also sought informal input from Mr. Chunyi (Charlie) Hao, Mr. Sanjay Prasad and Ms. Tiemei (Sarah) Li, whom Finnovate had designated to fill the vacancies left by the departing independent directors. In his conversations with Mr. Hao, Mr. Prasad and Ms. Li, Mr. Kung contrasted Scage International’s readiness for a business combination with that of Target B and Target C. Mr. Hao, Mr.