Company: NCEL
Filing Date: 2025-07-29
Form Type: F-4/A
Source: 0001213900-25-068765
Chunk: 307

Company: NewcelX Ltd.
Filing Date: 2025-07-29
Form: F-4/A
Chunk 307
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 Uncertainty surrounding the Merger could lead to fluctuations in stock prices. •Dissenting Shareholders: Some shareholders may oppose the Merger, leading to resistance or legal action. Risk Diversification Considerations •Advantages •Product or Service Diversification: Merging portfolios reduces dependency on a single product or market. •Geographic Diversification: Operating in diverse regions mitigates exposure to regional downturns. •Customer Base Expansion: Broadening the customer base reduces reliance on a few key clients. 135 •Risks •Complexity in Managing Multiple Markets: Different regulatory requirements, economic conditions, and customer behaviors could create challenges. •Brand Positioning Conflicts: If the companies have different brand identities, customers may struggle to understand the new value proposition and or story. •Risk Concentration in Certain Markets: If the Merger does not achieve its intended diversification, the combined company may become overexposed to certain high -riskareas. Cultural and Vision Alignment •Advantages •Shared Mission: Aligning strategic goals unifies purpose. •Cultural Compatibility: A strong cultural fit is expected to ensure smoother integration and employee retention. •Risks •Loss of Corporate Identity: If one company’s culture dominates, employees of the other company may feel marginalized. •Employee Resistance: Resistance to change may lead to decreased productivity and engagement. •Leadership Clashes: Differences in leadership style and decision -makingprocesses could create friction at the executive level. Access to Resources •Advantages •Capital and Financing: Greater financial resources facilitate investment in growth areas. •Intellectual Property (IP): Combining IP assets strengthens competitive positioning. •Talent Pool: Retaining top talent enhances operational capabilities. •Risks •Overestimated Resource Availability: Anticipated capital, talent retention, or IP benefits may not fully materialize. •Debt Accumulation: If the Merger involves significant debt financing, it could strain financial stability. •Regulatory Barriers: Accessing new markets or intellectual property may require additional compliance efforts. The NLS Board and its legal advisors conducted a comprehensive review of strategic alternatives, including remaining a standalone company, liquidation, dissolution, and other strategic transactions. After thorough consideration, the NLS Board determined that the Merger provided greater value to NLS’s shareholders than any other alternatives. Following arm’s -lengthnegotiations, the NLS Board believes the Merger Agreement’s terms, including the Exchange Ratio formula, are the most favorable achievable under the circumstances. In evaluating and approving the Merger Agreement and the