Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 226

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 226
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 PubCo currently intends to follow Cayman Islands corporate governance practices in lieu of the corporate governance standards of the Nasdaq Stock Market that listed companies must, among others: (1) have a compensation committee or a nominating and corporate governance committee consisting entirely of independent directors, and (2) have regularly scheduled executive sessions with only independent directors each year. PubCo may also continue to rely on these and other exemptions available to foreign private issuers in the future, and to the extent that PubCo chooses to do so, its shareholders may be afforded less protection than they otherwise would have under the Nasdaq Stock Market Rules applicable to U.S. domestic issuers. PubCo will be a “controlled company” under the Corporate Governance Rules of Nasdaq and can rely on exemptions from certain corporate governance requirements that could adversely affect PubCo’s public shareholders. Mr. Chao Gao will hold a majority of the aggregate voting power of PubCo upon the completion of the Business Combination. Therefore, PubCo will qualify as a “controlled company” under the Corporate Governance Rules of Nasdaq. Under these rules, a company of which more than 50% of the voting power is held by an individual, group or another company is a controlled company and may elect not to comply with certain corporate governance requirements, including the requirement that a majority of its directors be independent, as defined in the Corporate Governance Rules of the Nasdaq and the requirement that the compensation committee and nominating and corporate governance committee of PubCo consist entirely of independent directors. PubCo may intend to rely on these exemptions. If PubCo decides to rely on exemptions applicable to controlled companies under the Corporate Governance Rules of Nasdaq in the future, its public shareholders will not have the same protections afforded to shareholders of companies that are subject to all of Nasdaq corporate governance requirements. You may face difficulties in protecting your interests, and your ability to protect your rights through U.S. courts may be limited. Each of PubCo, Finnovate and Scage International is an exempted company limited by shares incorporated under the laws of the Cayman Islands, and following the Business Combination, PubCo will conduct a majority of its operations through its subsidiaries in China. Substantially all of PubCo’s assets following the Business Combination will be located outside of the United States. A majority of PubCo’s officers and directors following the Business Combination will reside outside the United States and a substantial portion of the assets of those persons are located outside of the United States. As a result, it could be difficult or impossible for you