Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 73

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 3
Chunk 73
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 Each of
NLS and Kadimastem expect that the elimination of duplicative costs, as well as the realization of other efficiencies related to the integration
of the two businesses, may allow NLS to offset those incremental expenses over time, the net benefit of which may not be achieved in the
near term, or at all.

Lawsuits may be commenced seeking to enjoin
or prevent the Merger or seeking other relief which may delay or prevent the completion of the Merger and result in NLS or Kadimastem
incurring substantial costs.

Public company merger and
acquisition transactions are often subject to lawsuits initiated by plaintiffs seeking to enjoin or prevent the transaction or obtain
other relief. NLS, Kadimastem and their respective executive officers, directors and advisors may become subject to similar litigation
with respect to the Merger. Any such lawsuit could seek, among other things, injunctive or other equitable relief, including a request
to rescind parts of the Merger Agreement and otherwise to enjoin the parties from consummating the Merger, as well as to require payment
of fees and other costs by the defendants. NLS and Kadimastem may incur substantial costs defending any such lawsuit, including the distraction
of management’s attention, even if such lawsuits are without merit or unsuccessful. No assurance can be made as to the outcome of
any such lawsuits. If plaintiffs are successful in obtaining an injunction prohibiting the parties from completing the Merger or in obtaining
other relief, the completion of the Merger may be prevented or delayed or its terms could change.

If the Merger’s benefits do not meet
the expectations of investors, shareholders or financial analysts, the market price of securities may decline.

If the benefits of the Merger
do not meet the expectations of investors or securities analysts, the market price of common shares prior to the completion of the Merger
may decline. The market values of our securities at the time of the Merger may vary significantly from their prices on the date the Merger
Agreement was executed.

In addition, following the
Merger, fluctuations in the price of common shares could contribute to the loss of all or part of your investment. If an active market
for common shares develops and continues, the trading price of common shares following the Merger could be volatile and subject to wide
fluctuations in response to various factors, some of which are beyond our control. If the benefits of the Merger do not meet the expectations