Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 488

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 488
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 “—Ownership and Disposition of PubCo ADSs and Assumed Warrants by U.S. Holders—Passive Foreign Investment Company Rules.” It is difficult to predict whether, in what form and with what effective date, final Treasury Regulations under Section 1291(f) of the Code will be adopted. Additionally, the treatment of U.S. holders of Finnovate Ordinary Shares or Company Ordinary Shares who exchange their Finnovate Ordinary Shares or Company Ordinary Shares for PubCo ADSs could be materially different from that described above if PubCo is treated as a PFIC for U.S. federal income tax purposes (see discussion below under “—Ownership and Disposition of PubCo ADSs and Assumed Warrants by U.S. Holders—Passive Foreign Investment Company Rules”). Therefore, U.S. holders of Finnovate Ordinary Shares or Company Ordinary Shares that have not made a timely QEF election or a mark -to -marketelection and U.S. holders of Finnovate Warrants may, pursuant to the proposed Treasury Regulations, be subject to taxation under the PFIC rules on the Business Combination to the extent their Finnovate Ordinary Shares and/or Finnovate Warrants or Company Ordinary Shares have a fair market value in excess of their tax basis therein. THE RULES DEALING WITH PFICS IN THE CONTEXT OF THE BUSINESS COMBINATION ARE VERY COMPLEX AND ARE IMPACTED BY VARIOUS FACTORS. ALL U.S. HOLDERS SHOULD CONSULT THEIR TAX ADVISORS CONCERNING THE CONSEQUENCES TO THEM OF THE PFIC RULES, AND WHETHER A QEF ELECTION, A MARK -TO -MARKETELECTION OR ANY OTHER ELECTION IS AVAILABLE AND THE CONSEQUENCES TO THEM OF ANY SUCH ELECTION, AND THE IMPACT OF ANY PROPOSED OR FINAL PFIC TREASURY REGULATIONS. Redemption of Finnovate Ordinary Shares In the event that a U.S. holder of Finnovate Ordinary Shares exercises such holder’s right to have such holder’s Finnovate Ordinary Shares redeemed pursuant to the redemption provisions described herein, the treatment of the transaction for U.S. federal income tax purposes will depend on whether the redemption qualifies as a sale of such stock pursuant to Section 302 of the Code or whether the U.S. holder will be treated as receiving a corporate distribution within the meaning of Section 301 of the Code. Whether that redemption qualifies for sale treatment will depend largely on the total number of shares of Finnovate Ordinary Shares treated as held by the