Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 177

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 177
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age International and PubCo may not be fully aware of the identities of beneficial owners who are PRC residents. Scage International does not have control over its beneficial owners and cannot guarantee that all of its beneficial owners who are PRC residents will comply with the requirements under Circular 37 or related SAFE rules, or other outbound investment related 62 regulations. Failure by such shareholders or beneficial owners to comply with such regulations, or failure by Scage International to amend the foreign exchange registrations of PRC Subsidiaries, could subject Scage International to fines or penalties, restrict its overseas or cross -borderinvestment activities, limit the ability of PRC Subsidiaries to make distributions or pay dividends to Scage International or affect its ownership structure, which could adversely affect Scage International’s and PubCo’s business and prospects. If we fail to comply with PRC regulations regarding the registration requirements for employee stock ownership plans or share option plans, the PRC plan participants or we could be subject to fines and other legal or administrative penalties. In February 2012, SAFE promulgated the Notices on Issues Concerning the Foreign Exchange Administration for Domestic Individuals Participating in Stock Incentive Plan of Overseas Publicly Listed Company (the “SAFE Circular 7”). Pursuant to SAFE Circular7, directors, supervisors, senior management and other employees participating in any stock incentive plan of an overseas publicly listed company who are PRC citizens or who are non -PRCcitizens residing in China for a continuous period of not less than one year, are required to register with SAFE through a domestic qualified agent, which could be the PRC subsidiary of such overseas -listedcompany, and complete certain other procedures, unless certain exceptions are available. In addition, an overseas -entrustedinstitution must be retained to handle matters in connection with the exercise or sale of stock options and the purchase or sale of shares and interests. Scage International, PubCo and our executive officers and other employees who are PRC citizens or non -PRCcitizens living in China for a continuous period of not less than one year that are granted options going forward will be subject to these regulations as our company becomes an overseas -listedcompany. Failure to complete SAFE registrations may subject them to fines of up to RMB50,000 for individuals and may also limit our ability to contribute additional capital into PRC Subsidiaries and their ability to distribute dividends to us. The SAFE regulations may evolve, which may restrict our ability to adopt additional incentive plans for our directors, executive officers and employees