Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 486

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 486
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. Any loss realized by a U.S. holder would not be recognized. In this case, the holding period of the PubCo ADSs received in the Business Combination will include the holding period during which the Finnovate Ordinary Shares exchanged therefor were held by such U.S. holder, and the holding period of Assumed Warrants received in the Business Combination will begin on the day after the Business Combination. If the Business Combination qualifies as a reorganization as well as a Section 351 exchange, a U.S. holder that receives PubCo ADSs in exchange for Finnovate Ordinary Shares and whose Finnovate Warrants automatically convert into Assumed Warrants will not recognize any gain or loss upon the exchange. In such case, a U.S. holder’s tax basis in the PubCo ADSs and the Assumed Warrants received will be equal to the U.S. holder’s basis in the Finnovate Ordinary Shares and Finnovate Warrants exchanged therefor, and the holding period of the PubCo ADSs and Assumed Warrants will include the holding period during which the Finnovate Ordinary Shares and Finnovate Warrants exchanged therefor were held by such U.S. holder. However, there are many requirements that must be satisfied in order for the Business Combination to qualify as a “reorganization” under Section 368 of the Code, some of which are based upon factual determinations and others are fundamental to corporate reorganizations. For example, it is unclear as a matter of law whether an entity that may not have a historic business, such as Finnovate, can satisfy the “continuity of business enterprise” requirement under Section 368 of the Code. In addition, reorganization treatment could be adversely affected by events or actions that occur prior to or at the time of the Business Combination, some of which are outside the control of Finnovate. For example, the requirements for reorganization treatment could be affected by the magnitude of Finnovate Ordinary Share redemptions that occur in connection with the Business Combination. U.S. holders of Finnovate Warrants are urged to consult with their tax advisors regarding the treatment of their Finnovate Warrants in connection with the Business Combination. Application of the Passive Foreign Investment Company Rules to the Business Combination Based upon the composition of its income and assets, Finnovate believes that that it would likely be considered a passive foreign investment company (“PFIC”) for its current taxable year which ends as a result of the Business Combination. Scage International has not determined whether it