Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 170

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 170
---
 of the Business Combination, PubCo will rely on dividends and other distributions on equity paid by its PRC subsidiaries to fund any cash and financing requirements PubCo may have, and any limitation on the ability of our PRC subsidiaries to make payments to PubCo could have a material adverse effect on its ability to conduct its business. PubCo is a Cayman Islands holding company with no material operation of its own. After the consummation of the Business Combination, PubCo will rely on dividends and other distributions on equity paid by its PRC subsidiaries for cash and financing requirements, including the funds necessary to pay dividends and other cash distributions to its shareholders and service any debt PubCo may incur. To the extent its cash or assets in the business are in mainland China or Hong Kong or a mainland China or Hong Kong entity, the funds or assets may not be available to fund operations or for other use outside of mainland China or Hong Kong due to interventions in or the imposition of restrictions and limitations on the ability of PubCo or its subsidiaries to transfer cash or assets. Assuming the consummation of the Business Combination, current PRC regulations permit PubCo’s PRC subsidiaries to pay dividends to PubCo only out of their accumulated after -taxprofits upon satisfaction of relevant statutory conditions and procedures, if any, determined in accordance with Chinese accounting standards and regulations. In addition, after the consummation of the Business Combination, PubCo’s PRC subsidiaries are required to set aside at least 10% of its accumulated profits each year, after making up previous years’ accumulated losses, if any, to fund certain reserve funds until the total amount set aside reaches 50% of its registered capital. For a detailed discussion of applicable PRC regulations governing distribution of dividends, see “Regulations Applicable to Scage International’s Business—Regulations Relating to Dividend Distributions.” As a result of these laws, rules and regulations, after the consummation of the Business Combination, PubCo’s PRC subsidiaries are restricted in their ability to transfer a portion of their respective net assets to their shareholders as dividends. While there are currently no such restrictions on foreign exchange and PubCo’s ability to transfer cash or assets between VVS International Limited and Scage (Hong Kong) Limited, assuming the consummation of the Business Combination, if certain PRC laws and regulations, including existing laws and regulations and those enacted or promulgated in the future were to become applicable to Scage (Hong Kong) Limited in the future, and to the extent PubCo’s