Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 115

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 115
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 from these licenses, approvals and filing procedures, the PRC Subsidiaries may not be able to maintain existing licenses, permits and approvals or to complete filing or record procedures, and the government authorities may subsequently require the PRC Subsidiaries to obtain any additional licenses, permits, approvals or to complete filing or record procedures. If the PRC Subsidiaries fail to obtain the necessary licenses, permits, approvals or fail to complete filing or record procedures or inadvertently conclude that any permissions or approvals are not required, or if applicable laws, regulations, or interpretations change and the PRC Subsidiaries are required to obtain such permissions or approvals or to complete such filing or record procedures in the future, the PRC Subsidiaries may be subject to fines, confiscation of revenues generated from incompliant operations or the suspension of relevant operations. The PRC Subsidiaries may also experience adverse publicity arising from such non -compliancewith government regulations that negatively impact Scage International. See “Risk Factors—Risks Related to Doing Business in China—The PRC government has significant authority to exert influence on the China operations of an offshore holding company, and offerings conducted overseas and foreign investment in China -basedissuers, such as Scage International and PubCo following the Business Combination. Changes in China’s economic, political or social conditions or government policies could have a material adverse effect on the business, results of operations, financial condition of Scage International and PubCo following the Business Combination and the value of PubCo’s securities.” Cash and Asset Flows through Organization Cash is transferred among Scage International, its offshore subsidiaries and its PRC subsidiaries, in the following manner: (1) funds are transferred to its PRC subsidiaries from Scage International as needed through Scage International’s subsidiaries outside China in the form of capital contributions or shareholder loans, as the case may be; and (2) dividends or other distributions may be paid by its PRC subsidiaries to Scage International through its subsidiaries outside China. Nanjing Scage and its subsidiaries generate and retain cash generated from operating activities and re -investit in its business. None of Scage International’s subsidiaries outside China has made distribution to its shareholders. In the future, following the completion of the Business Combination, PubCo’s ability to pay dividends, if any, to its shareholders and warrant holders and to service any debt it may incur will depend upon dividends paid by Scage International and its subsidiaries. As of the date of this proxy statement/prospectus, no cash generated