Company: NCEL
Filing Date: 2025-02-10
Form Type: F-3
Source: 0001213900-25-011823
Chunk: 107

Company: NewcelX Ltd.
Filing Date: 2025-02-10
Form: F-3
Chunk 107
---
.

Since the war broke out on
October 7, 2023, Kadimastem’s operations have not been adversely affected by this situation, and it has not experienced any material
disruptions to its operations. Kadimastem has the ability, if necessary, to shift its manufacturing from Israel to other countries where
it has business partners, and it have not had customers in Israel in the last year. However, the intensity and duration of the war in
the Middle East is difficult to predict at this stage, as are such war’s economic implications on Kadimastem’s business and
operations and on Israel’s economy in general. if the war in the other fronts, such as Lebanon, Syria and the West Bank expands
further, Kadimastem’s operations may be adversely affected.

In addition, since the commencement
of these events, there have been continued hostilities along Israel’s northern border with Lebanon (with the Hezbollah terror organization)
and southern border (with the Houthi movement in Yemen). It is possible that hostilities with Hezbollah in Lebanon will escalate, and
that other terrorist organizations, including Palestinian military organizations in the West Bank as well as other hostile countries,
such as Iran, will join the hostilities. Such clashes may escalate in the future into a greater regional conflict. In addition, Iran
has threatened to attack Israel and is widely believed to be developing nuclear weapons. Iran is also believed to have a strong influence
among extremist groups in the region, such as Hamas in Gaza, Hezbollah in Lebanon, the Houthi movement in Yemen and various rebel militia
groups in Syria. These situations may potentially escalate in the future to more violent events which may affect Israel and Kadimastem.
Any armed conflicts, terrorist activities or political instability in the region could adversely affect business conditions, could harm
Kadimastem’s results of operations and could make it more difficult for Kadimastem to raise capital. Parties with whom Kadimastem
does business may decline to travel to Israel during periods of heightened unrest or tension, forcing Kadimastem to make alternative arrangements
when necessary in order to meet Kadimastem’s business partners face to face. In addition, the political and security situation in
Israel may result in parties with whom Kadimastem has agreements involving performance in Israel claiming that they are not obligated
to perform their commitments under those agreements pursuant to force majeure provisions in such agreements. Further, in the past, the
State of Israel and