Company: NCEL
Filing Date: 2025-06-23
Form Type: F-4/A
Source: 0001213900-25-056787
Chunk: 282

Company: NewcelX Ltd.
Filing Date: 2025-06-23
Form: F-4/A
Chunk 282
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cash flows to derive rNPV This captures the risks inherent in biotech drug development. rNPV provides a more accurate asset valuation than basic DCF as it enables conducting pharma and biotech valuation based on the stage (preclinical, Phase 1 -3) of development of assets. As mentioned in the company description, Kadimastem is currently in the process of developing two indications: •AstroRx ®— clinical development of a cell therapy for treating ALS. •IsletRx — a treatment for insulin -dependentdiabetes (type 1 diabetes and type 2 diabetes requiring insulin). Moore has valued Kadimastem under the assumption that these are its’ only two projects, therefore we accounted for expected income and expenses related to these indications alone and did not take into consideration developments that Kadimastem might be performing in the future. Another assumption made for the sake of the current valuation is that Kadimastem will develop the two indications on its own until the successful termination of the Phase II clinical trials and following that will seek for a business agreement with a large pharma company that will perform the Phase III clinical trials (on its own account) and after the successful conclusion of the trials will continue and market the finished products. Kadimastem will be entitled for an upfront payment at the end of Phase II and royalties from the third -partyrevenues. The detailed analysis of the DCF method can be reviewed in the valuation reports attached as Annex E to this proxy statement/prospectus which is incorporated herein by reference. Summary of Analysis Moore began its analysis through performed a DCF Analysis of the estimated future unlevered free cash flows attributable to Kadimastem for the fiscal years of 2024 through 2031. In applying the DCF Analysis, Newbridge relied on the financial projections and forecasts prepared by Moore that estimated certain revenue growth rates and cashflow margins. Moore applied a discount rate of 19%. The discount rate was determined using the weighted average cost of capital (WACC) method, which has many inputs, with key variables including the Israeli Income Tax Rate of 23.0%, the Risk -FreeRate of Return (Rf) using the 10 -yearbond yield of 1.81%, a Levered Beta variable of 0.09x for the public comparable data set used for the public comparable analysis, a size premium of 10.73% Duff & Phelps, a Specific premium of 17%, a cost of equity premium of 33.23