Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 236

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 236
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 rely on sales of the PubCo ADSs after price appreciation, which may never occur, as the only way to realize any future gains on your investment. A significant portion of PubCo’s 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 PubCo ADSs to drop significantly, even if PubCo’s business is doing well. After the Business Combination (and assuming no redemptions of Finnovate Public Shares), the Sponsor Parties and Finnovate’s current officers and directors will hold approximately 0.4% of the PubCo Ordinary Shares, or 281,154 PubCo Ordinary Shares into which the Finnovate Founder Shares will convert (or 0.4% of the PubCo Ordinary Shares, assuming Contractual Maximum Redemption of Finnovate Public Shares). Pursuant to the terms of the Insider Letter, after accounting for any potential release of lock -upin connection with the Sponsor Distribution, a minimum of 281,154 Finnovate Founder Shares (which will be converted into shares of PubCo Ordinary Shares at the Effective Time) are subject to a six -monthlock -up. Additionally, pursuant to each Key Seller Lock -UpAgreement with the Founder and other key shareholders of Scage International, 40% of the PubCo Ordinary Shares held by such shareholders upon the consummation of the Business Combination will be subject to a six -monthlock -upand 60% of the PubCo Ordinary Shares held by such shareholders will be subject to a 36 -monthlock -up. PubCo Ordinary Shares issued to other shareholders of Scage International as consideration in connection with the Business Combination are subject to a six -monthlock -up. Prior to the Closing of the Business Combination, Finnovate and Scage International may release certain PubCo Ordinary Shares issuable to certain Finnovate Initial Shareholders and Scage International shareholders from the transfer restrictions under the lock -upagreements in order to satisfy the initial listing requirements of the Nasdaq Stock Market. 92 Moreover, the holders of the Finnovate Founder Shares are entitled to registration rights pursuant to a registration rights agreement entered into in connection with the Finnovate IPO, which will be replaced by the receipt by the Amended and Restated Registration Rights Agreement. The presence of these additional PubCo Shares in the form of ADSs trading in the public market may have an adverse effect on the market price of PubCo ADSs. The reduced reporting and disclosure