Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 175

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 175
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RC Subsidiaries, which may adversely affect PubCo’s liquidity and its ability to fund and expand business in China. On October 23, 2019, the SAFE promulgated the Circular of Further Facilitating Cross -borderTrade 61 and Investment (the “SAFE Circular 28”) which, among other things, allows all foreign -investedcompanies to use Renminbi converted from foreign currency -denominatedcapital for equity investments in China, as long as the equity investment is genuine, does not violate applicable laws, and complies with the negative list on foreign investment. On April 10, 2020, SAFE promulgated the Circular on Optimizing Administration of Foreign Exchange to Support the Development of Foreign -relatedBusiness (the “SAFE Circular 8”), under which eligible enterprises are allowed to make domestic payments by using their capital funds, foreign loans and the income under capital accounts of overseas listing without providing the evidentiary materials concerning authenticity of each expenditure in advance, provided that their capital use shall be authentic and conforms to the prevailing administrative regulations on the use of income under capital accounts. Since the SAFE Circular 28 and SAFE Circular 8 are newly promulgated, the implementation of these regulations may be evolving and subject to change. In light of the various requirements imposed by PRC regulations on loans to and direct investment in PRC entities by offshore holding companies, we cannot assure you that Scage International or PubCo will be able to complete the necessary government registrations or obtain the necessary government approvals according to applicable PRC laws and regulations on a timely basis, or at all, with respect to future loans by Scage International or PubCo to PRC Subsidiaries or with respect to future capital contributions by Scage International or PubCo to the PRC Subsidiaries. If Scage International, PubCo or their offshore subsidiaries fail to complete such registrations, Scage International’s ability to use the proceeds of securities offering, and to capitalize its PRC operations may be negatively affected, which could adversely affect PubCo’s liquidity and Scage International’s ability to fund and expand its business. PRC regulations relating to the establishment of offshore special purpose companies by PRC residents may subject our PRC resident beneficial owners or PRC Subsidiaries to liability or penalties, limit our ability to inject capital into PRC Subsidiaries, limit PRC Subsidiaries’ ability to increase their registered capital or distribute profits to Scage International, or may otherwise adversely affect Scage International. SAFE promulg