Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 498

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 498
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 which is stock that is regularly traded on a qualified exchange or other market, as defined in applicable U.S. Treasury Regulations. The PubCo ADSs, which are expected to be listed on the Nasdaq, are expected to qualify as marketable stock for purposes of the PFIC rules, but there can be no assurance that they will be “regularly traded” for purposes of these rules. If a U.S. holder makes a valid mark -to -marketelection with respect to its PubCo ADSs, such U.S. holder will include as ordinary income each year, the excess, if any, of the fair market value of the PubCo ADSs at the end of the taxable year over the U.S. holders adjusted basis in the PubCo ADSs. Such U.S. holder will also be allowed to take an ordinary loss in respect of the excess, if any, of such holder’s adjusted basis in the PubCo ADSs over the fair market value of such PubCo ADSs at the end of the taxable year (but only to the extent of the net amount of previously included income as a result of the mark -to -marketelection). The U.S. holder’s basis in the PubCo ADSs will be adjusted to reflect any such income or loss amounts. Any gain that is recognized on the sale or other taxable disposition of PubCo ADSs would be ordinary income and any loss would be an ordinary loss to the extent of the net amount of previously included income as a result of the mark -to -marketelection and, thereafter, a capital loss. A mark -to -marketelection cannot be made for any lower -tierPFICs. U.S. holders should consult their tax advisers regarding the application of the PFIC rules to their indirect ownership of shares in any lower -tierPFICs. PFIC Reporting Requirements.A U.S. holder who owns, or who is treated as owning, PFIC stock during any taxable year in which PubCo is classified as a PFIC may be required to file IRS Form 8621. U.S. holders of PubCo ADSs and Assumed Warrants should consult their tax advisors regarding the requirement to file IRS Form 8621 and the potential application of the PFIC regime. Additional Reporting Requirements Certain U.S. holders holding specified foreign financial assets with an aggregate value in excess of an applicable dollar threshold are required to report information to the IRS relating to PubCo ADSs and Assumed Warrants, subject to certain exceptions (including an exception for