Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 64

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 3
Chunk 64
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 and Four Genuine Brothers Limited.

This concentration of ownership
and the protective provisions in the A& R MAA may discourage, delay or prevent a change in control of our Company, which could have
the dual effect of depriving our shareholders of an opportunity to receive a premium for their shares as part of a sale of us and reducing
the price of the Company ADSs. As a result of the foregoing, the value of your investment could be materially reduced.

The issuance of additional share capital
in connection with financings, acquisitions, investments, our equity incentive plans or otherwise will dilute all other shareholders.

We expect to issue additional
share capital in the future, which will result in dilution to all other shareholders. We also expect to adopt a share incentive plan
and grant equity awards to key employees. We may also raise capital through equity financings in the future. As part of our business
strategy, it may acquire or make investments in companies, solutions or technologies and issue equity securities to pay for any such
acquisition or investment. Any such issuances of the additional share capital may cause shareholders to experience significant dilution
of their ownership interests and the per share value of Company ADSs to decline.

We do not intend to pay dividends before
it becomes profitable, and as a result, your ability to achieve a return on your investment in the foreseeable future will depend on
appreciation in the price of the Company ADSs.

We do not intend to pay any
cash dividends before it becomes profitable, which may not occur in the foreseeable future. Any determination to pay dividends in the
future will be at the discretion of our board of directors. Accordingly, you may need to rely on sales of the Company ADSs after price
appreciation, which may never occur, as the only way to realize any future gains on your investment.

A significant portion of our outstanding
shares may not be immediately resold but may be sold into the market in the near future. This could cause the market price of the Company
ADSs to drop significantly, even if our business is doing well.

The Sponsor Parties and Finnovate’s
officers and directors hold approximately 5.9% of the Ordinary Shares, or 4,312,500 Ordinary Shares. According to certain
lock-up agreement with the founder and other key shareholders of Scage International, two-fifths of the Ordinary Shares held by such
shareholders is subject to a six-month lock-up and three-fifths of the Company ADSs