Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 70

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 3
Chunk 70
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 of Kadimastem and the beneficial owner of 1,371,052 shares of Kadimastem, and Ronen Twito, Executive
Chairman and Chief Executive Officer, or CEO, of Kadimastem, and beneficial owner of 367,332 of Kadimastem, will benefit directly from
the exchange of their shares of Kadimastem in exchange for shares of NLS resulting from the Merger.

This may create potential conflicts of interest
or the appearance of such conflicts, which may lead to increased dissident shareholder activity, including litigation, which could result
in significant costs for NLS and Kadimastem and could materially delay or prevent the completion of the Merger.

The interests of NLS’s and Kadimastem’s
directors and executive officers include, among other things, the continued service as a director or executive officer of NLS following
the Merger and certain rights to continuing indemnification and directors’ and officers’ liability insurance for Kadimastem
directors and executive officers. There is a risk that these interests may influence the directors and executive officers to support the
Merger.

The interests of NLS’s
and Kadimastem’s directors and executive officers in the Merger may increase the risk of litigation intended to enjoin or prevent
the Merger and the risk of other related dissident shareholder activity. In the past, and in particular following the announcement of
a significant transaction, periods of volatility in the overall market or declines in the market price of a company’s securities,
shareholder litigation and dissident shareholder proposals have often been instituted against companies alleging conflicts of interest
in business dealings with affiliated or related persons and entities. For example, following the Merger, members of the combined company
Board will be entitled to new compensation terms, and certain officers of Kadimastem holding shares in Kadimastem will exchange such shares
for shares of NLS in connection with the Merger. The relationships described above may precipitate such activities by dissident shareholders
and, if instituted against NLS or Kadimastem or their respective directors or executive officers, such activities could result in substantial
costs, a material delay or prevention of the Merger and a diversion of management’s attention, even if the shareholder action is
without merit or unsuccessful.

The Merger is subject to the satisfaction
or waiver of conditions that may not be satisfied or completed on a timely basis, if at all. Failure to consummate the Merger could