Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 104

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 104
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 and in the best interest of Finnovate’s shareholders and unanimously recommends that its shareholders vote “ FOR” the NTA Proposal, “ FOR” the Business Combination Proposal, “ FOR” the Merger Proposal, “ FOR” the PubCo Memorandum and Articles Proposal, “ FOR” each of the separate Organizational Documents Proposals, “ FOR” each of the director nominees set forth in the PubCo Director Election Proposal and, if presented at the Meeting, “ FOR” the Adjournment Proposal. Material U.S. Federal Income Tax Considerations For a description of certain material U.S. federal income tax consequences of the Business Combination, the exercise of redemption rights in respect of ordinary shares of Finnovate and the ownership and disposition of PubCo ADSs, see “Material U.S. Federal Income Tax Considerations.” Anticipated Accounting Treatment The Business Combination will be accounted for as a reverse merger in accordance with U.S. GAAP. Under this method of accounting, Finnovate will be treated as the “acquired” company for financial reporting purposes. This determination was primarily based on the current shareholders of Scage International having a majority 16 of the voting power of the post -combinationcompany, Scage International’s senior management comprising all of the senior management of the post -combinationcompany, the relative size of Scage International compared to Finnovate, and Scage International’s operations comprising the ongoing operations of the post -combinationcompany. Accordingly, for accounting purposes, the Business Combination will be treated as the equivalent of Scage International issuing stock for the net assets of Finnovate, accompanied by a recapitalization. The net assets of Finnovate will be stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the Business Combination will be those of Scage International. Comparison of Rights of PubCo’s Shareholders and Finnovate’s Shareholders If the Business Combination is completed, holders of Finnovate Ordinary Shares will become holders of PubCo ADSs or PubCo Ordinary Shares and their rights as shareholders will be governed by PubCo’s organizational documents. See “Comparison of Shareholder Rights” for details. Emerging Growth Company PubCo is and, following the Business Combination, will be an “emerging growth company” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). As such, PubCo will be eligible to take advantage of certain exemptions from various reporting requirements that