Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 172

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 172
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 and out of China and governmental regulation over currency conversion may limit PubCo’s ability to pay dividends and other obligations after the consummation of the Business Combination and affect the value of your investment. Conversion of Renminbi into foreign currencies and the remittance of funds out of China shall be made in compliance with relevant PRC laws and regulations. PubCo and its PRC subsidiaries after the consummation of the Business Combination receive substantially all of their revenue in Renminbi. Under PubCo’s corporate structure assuming the consummation of the Business Combination, its income will be primarily derived from dividend payments from its PRC subsidiaries. PubCo may convert a portion of its revenue into other currencies to meet its foreign currency obligations, such as payments of dividends declared in respect of PubCo ADSs or PubCo Ordinary Shares, if any. Shortages in the availability of foreign currency may restrict the ability of PubCo’s PRC subsidiaries to remit sufficient foreign currency to pay dividends or other payments to PubCo, or otherwise satisfy their foreign currency -denominatedobligations, after the consummation of the Business Combination. Under existing PRC foreign exchange regulations, payments of current account items, including profit distributions, interest payments, and trade and service -relatedforeign exchange transactions, can be made in foreign currencies without the prior approval of the Administration of Foreign Exchange of (the “SAFE”) by complying with certain procedural requirements. However, approval from or registration or filings with competent government authorities is required where Renminbi is to be converted into foreign currency and remitted out of China to pay capital expenses such as the repayment of loans denominated in foreign currencies. The PRC foreign exchange regulations may evolve in the future. We cannot assure you that new regulations will not be promulgated in the future that would have effect on the remittance of Renminbi into or out of China. If PubCo cannot obtain sufficient foreign currencies to satisfy its foreign currency needs after the consummation of the Business Combination, PubCo may not be able to pay dividends in foreign currencies to its shareholders. China’s M&A Rules and certain other PRC regulations establish procedures for certain acquisitions of PRC companies by foreign investors, which could make it difficult for PubCo to pursue growth through acquisitions in China after the consummation of the Business Combination. The M&A Rules and some other regulations and rules concerning mergers and acquisitions established procedures and requirements for acquisition of Chinese companies by foreign investors, including requirements in some instances that MOFCOM be notified in advance of any change