Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 182

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 182
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 chops with the relevant authorities, or otherwise seek legal redress for the violation of the representative’s fiduciary duties against Nanjing Scage, which could involve significant time and resources to resolve and divert management attention from business operations. In addition, the affected entity may not be able to recover corporate assets that are sold or transferred out of Nanjing Scage’s control in the event of such a misappropriation if a transferee relies on the apparent authority of the representative and acts in good faith. Fluctuations in exchange rates could have a material adverse effect on our results of operations and the value of your investment. The conversion of Renminbi into foreign currencies, including the U.S. dollar, is based on rates set by the People’s Bank of China. The Renminbi has fluctuated against the U.S. dollar and other currencies, at times significantly and unpredictably. The value of Renminbi against the U.S. dollar and other currencies is affected by changes in global political and economic conditions and by China’s foreign exchange regulations, among other things. We cannot assure you that Renminbi will not appreciate or depreciate significantly in value against the U.S. dollar and other currencies in the future. It is difficult to predict how market forces or PRC, or U.S. government policy may impact the exchange rate between Renminbi and U.S. dollar in the future. Any significant appreciation or depreciation of Renminbi may materially and adversely affect Scage International’s or PubCo’s revenues, earnings and financial position, and the value of, and any dividends payable on, PubCo’s securities in U.S. dollars. For instance, to the extent that Scage International or PubCo needs to convert U.S. dollars it receives into Renminbi to pay its operating expenses, appreciation of Renminbi against the U.S. dollar would have an adverse effect on the RMB amount it would receive from the conversion. Conversely, a significant depreciation of Renminbi against the U.S. dollar may significantly reduce the U.S. dollar equivalent of Scage International’s or PubCo’s earnings, which in turn could adversely affect the price of PubCo’s securities. Very limited hedging options are available for Scage International and PubCo to reduce their exposure to exchange rate fluctuations at reasonable costs. As of the date of this proxy statement/prospectus, neither Scage International nor PubCo has entered into any hedging transactions in an effort to reduce its exposure to foreign currency exchange risk. While Scage International and PubCo