Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 118

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 118
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 to payment of dividends or otherwise transfers of any of their net assets to us. Remittance of dividends by the PRC Subsidiaries out of China is also subject to certain procedures with the banks designated by the PRC State Administration of Foreign Exchange. These restrictions are benchmarked against the paid -upcapital and the statutory reserve funds of the PRC Subsidiaries. While there are currently no such restrictions on foreign exchange and our ability to transfer cash or assets between Scage International and its Hong Kong subsidiary, if certain PRC laws and regulations, including existing laws and regulations and those enacted or promulgated in the future were to become applicable to the Hong Kong subsidiary in the future, and to the extent our cash or assets are in Hong Kong or a Hong Kong entity, such funds or assets may not be available due to interventions in or the imposition of restrictions and limitations on our ability to transfer funds or assets by the PRC government. Furthermore, there can be no assurance that the PRC government will not intervene or impose additional restrictions on Scage International and PubCo following the Business Combination, and the PRC Subsidiaries to transfer or distribute cash within the organization, which could result in an inability of or prohibition on making transfers or distributions to entities outside of mainland China and Hong Kong. See “Risk Factors—Risks Related to Doing Business in China—Restrictions on the remittance of Renminbi into 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.” 23 Use of Funds in Connection with the Business Combination Following the consummation of the Business Combination, PubCo plans to use the funds obtained in connection with the Business Combination, which PubCo expects to primarily consist of proceeds from any PIPE Investment and cash from the Trust Account after redemption, in the following manners: •payment of expenses incurred in connection with the Business Combination, which primarily include consulting fees, underwriting fees, legal fees, audit and accounting fees, repayment for sponsor loans and extension loans, and printing fees, with an estimated total amount of US$15million; and •strengthening Scage International’s R&D and marketing. Material Terms of Scage International’s Convertible Debt Debt from Gongqingcheng Lanyan In December 2021, a certain subsidiary of Scage International (together with its subsidiaries, the “Group”) entered into a debt agreement with Gongqingcheng Lanyan Y