Company: NCEL
Filing Date: 2025-07-29
Form Type: F-4/A
Source: 0001213900-25-068765
Chunk: 269

Company: NewcelX Ltd.
Filing Date: 2025-07-29
Form: F-4/A
Chunk 269
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 resolve on a reverse split. According to the Merger Agreement, each Kadimastem Ordinary Share will, by virtue of the Merger, be exchanged for and converted into the right to receive a newly issued, fully paid -inNLS Common Shares, based on an Exchange Ratio as set forth in the Merger Agreement. For the purpose of making available the required number of NLS Common Shares to serve as the Merger Consideration, or the Merger Consideration, for the Kadimastem shareholders, the Company has agreed to create the necessary Merger Consideration Shares by way of an ordinary capital increase, excluding the subscription rights of existing shareholders of the Company. Before that, the NLS Board proposes a par value reduction and a reverse split to optimize its capital structure. At the NLS Meeting, shareholders will be asked to approve a reverse split of the issued and outstanding NLS Common Shares within a range of two -for-one(2:1) to twenty -for-one(20:1), with the exact reverse split ratio to be decided no later than the morning of the NLS Meeting. If approved and implemented, the reverse split would reduce the number of outstanding NLS Common Shares and proportionally the total number of NLS Common Shares authorized in the capital band and in the conditional capital in separate resolutions. The reason for the share split is due to the need for the Company to meet the Nasdaq initial listing requirement, which requires the NLS Common Shares to reflect a closing bid price of at least $4.00 per share. Meeting the Nasdaq initial listing requirement is a closing condition of the Merger Agreement. The NLS Board believes that fixing the proposal for the exact reverse split ratio within a specified range of two -for-one(2:1) to twenty -for-one(20:1) immediately before the NLS Meeting (rather than proposing a fixed reverse split ratio) provides the flexibility to achieve the desired results of the reverse split. In determining the range of proposed reverse split ratios, the NLS Board considered numerous factors, including: •the projected impact of the reverse split ratio on the trading liquidity in the NLS Common Shares and the Company’s ability to continue the listing of the NLS Common Share on Nasdaq; •the potential devaluation of the Company’s market capitalization as a result of a reverse split; •the historical and projected performance of the NLS Common Shares and volume level before and after the reverse split; •prevailing market conditions; •general economic and other related conditions