Company: NCEL
Filing Date: 2025-03-03
Form Type: F-4/A
Source: 0001213900-25-018981
Chunk: 312

Company: NewcelX Ltd.
Filing Date: 2025-03-03
Form: F-4/A
Chunk 312
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 operations for a period of one year as of June 30, 2024. We expect to continue to generate operating losses and negative operating cash flows for the next few years and will need additional funding to support our planned operating activities through profitability. We are actively exploring a range of options to raise funds, including strategic partnerships, out -licensing, or divestment of assets of NLS, and 167 other future strategic actions. By October 10, 2024, we have completed a private financing round, debt conversion and forgiveness, vendor buy -out, and have identified a merger opportunity. Our future viability depends on our ability to extend payment terms with third -partycreditors until additional funds have been raised. Capital Resources and Liquidity In connection with the planned financing and reduction of liabilities, we have prepared the following pro forma balance sheets to illustrate the impact of these transactions. The following table compares our historical balance sheets as of June 30, 2024 with the pro forma capitalization as adjusted for the implemented transactions. •on an actual basis; •on a pro forma basis to give effect to the gross proceeds to us from (i)the increase in cash of a total $4,834,341 that will all be used for working capital and general corporate purposes as a result of the following changes: a)the sale of 81,944 common shares at a purchase price of $9.60 per share on July 1, 2024 and generated gross proceeds of $786,662. b)Proceeds of $3,200,000 received by NLS on October 10, 2024 upon entering into a securities purchase agreement with certain accredited investors. Pursuant to the terms of the Equity Purchase Agreement, we agreed to issue and sell to the investors, in a private placement offering (i) 806,452 common shares and (ii) Common Warrants to purchase 806,452 common shares, at a combined purchase price of $3.97, for aggregate gross proceeds of $3.2 million. The Common Warrants have a term of five years and have an exercise price of $4.25 per share. Pursuant to the Equity Purchase Agreement, we agreed to grant the investors the right to participate, in the aggregate, in up to fifty percent (50%) of future offerings for one year following the closing of the offering. c)Proceeds of $500,000 received by NLS in connection with issuance of 161,290 common shares issued in a private placement pursuant