Company: NCEL
Filing Date: 2025-02-10
Form Type: F-3
Source: 0001213900-25-011823
Chunk: 56

Company: NewcelX Ltd.
Filing Date: 2025-02-10
Form: F-3
Chunk 56
---
em’s potential customer base; negative impact on Kadimastem’s liquidity and financial condition
and share price, which may impact Kadimastem’s ability to raise capital in the market, obtain financing and secure other sources
of funding in the future on terms favorable to Kadimastem.

Inflation, which increased
significantly during 2024, could adversely affect Kadimastem’s business by increasing the costs of raw material and labor needed
to operate its business and could continue to adversely affect Kadimastem in future periods. If this current inflationary environment
continues, there can be no assurance that Kadimastem would be able to recover related cost increases through price increases, which could
result in downward pressure on Kadimastem’s operating margins. As a result, Kadimastem’s financial condition, results of operations,
and cash flows could be adversely affected over time.

Kadimastem may fail to realize some or all of the anticipated benefits of the proposed Merger, which may adversely affect the value of each Kadimastem ordinary share.

The
success of the Merger will depend, in part, on Kadimastem’s ability to realize the anticipated benefits from combining Kadimastem
and NLS. However, to realize these anticipated benefits, the businesses of Kadimastem and NLS must be successfully combined and the two
companies’ respective operations, technologies and personnel must be integrated following the closing of the merger. If Kadimastem
is not able to achieve these objectives within the anticipated time frame, or at all, the anticipated benefits and cost savings of the
Merger may not be realized fully or at all or may take longer to realize than expected and the value of Kadimastem’s ordinary shares
may be adversely affected. In addition, the overall integration of the businesses is a complex, time-consuming and expensive process that,
without proper planning and effective and timely implementation, could significantly disrupt Kadimastem’s operations following closing.

<div align='center'>42</div>

Specifically,
risks in integrating NLS into Kadimastem’s operations to realize the anticipated benefits of the Merger include, among other things,
the failure to:

| ● | effectively coordinate efforts to communicate Kadimastem’s capabilities and products following closing; |

| ● | compete effectively for additional opportunities expected to be available to Kadimastem following closing; |

| ● | integrate and harmonize financial reporting and information technology systems of Kadimast