Company: NCEL
Filing Date: 2025-10-17
Form Type: POS AM
Source: 0001213900-25-099986
Chunk: 71

Company: NewcelX Ltd.
Filing Date: 2025-10-17
Form: POS AM
Chunk 71
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 closing being caused by the Company. The Company issued 360,000PPCs to the Preferred Share holder in January 2025 representing the additional common shares to be issued for the reduction of conversion price of $ 4.96to $ 3.10to the 600,000shares converted. The common shares issuable pre and post modification of the conversion price was 806,452and 1,290,323, respectively, or 483,871additional common shares issuable upon conversion. Further, the conversion price was further reduced from $ 3.10to $ 1.65from the March 2025 Trigger when there was 81,452PPCs remaining unconverted with a stated value of $ 4.96resulting in 114,526additional common shares being issuable upon conversion. The March 2025 Trigger also reduced the exercise price of outstanding warrants issued in October 2024 from $ 4.25to $ 1.65per share. The Company determined the incremental value provided to the preferred shareholder for the reduction in the conversion price from $ 4.96to $ 3.10and $ 3.10to $ 1.65using a Black -Scholesmodel to determine the fair value of the Preferred Shares outstanding pre and post modification to the conversion price caused by the January and March 2025 Triggers. Further, the Company determined the incremental value provided to the warrant holders for the reduction in the exercise price from $ 4.25to $ 1.65. The incremental values computed using the Black -Scholesmodel on the Preferred Shares and warrants was $ 571,331and $ 42,608, respectively, or a total of $ 613,939. The Black -Scholesmodel incorporates the following inputs: expected term .25– 4.50years, risk free rate 4.05– 4.24%, share price $ 1.54– $ 2.06, volatility 121.24% -175.32%, and dividends of 0.00%. Make Whole Provision Pursuant to the March 2025 Offering, the Company agreed to a make whole arrangement with Alpha. The Company agreed to issue Alpha 435,000Preferred Shares to compensate Alpha for the common shares that would have been issued to Alpha under the Debt SPA and December 2024 SPA related to an alleged claim that the Company did not timely honor its price -protectionand registration obligations. In return, Alpha