Company: NCEL
Filing Date: 2025-03-03
Form Type: F-4/A
Source: 0001213900-25-018981
Chunk: 835

Company: NewcelX Ltd.
Filing Date: 2025-03-03
Form: F-4/A
Chunk 835
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 value of the conversion right and attributed the remainder of the consideration received for the total convertible loan to the loan component itself, which constitutes the host contract, as Noted above. This component will be measured in subsequent periods at amortized cost (according to the effective interest method). The issuance expenses totaled USD $55 thousand, of which, USD $45 thousand are attributed to profit and loss, and USD $9 thousand were deducted from the amount received in respect of the host contract. As part of the valuation project that was carried out at the time of completion, the total net consideration received by the Company, USD $1,240 thousand, was first allocated to the conversion component and a financial derivative in respect of the conversion mechanism, which constitutes a financial liability that was measured initially and in subsequent reporting periods at fair value through profit or a loss, in accordance with the provisions of IFRS9, “ -FinancialInstruments.” The remaining amount was attributed to the debt component, which will be presented at amortized cost and at a discount rate of 370%. In accordance with the above, the breakdown of the components of the convertible loan agreement as of the completion date are as follows:

|                                                                                   |     | Fair value |
|                                                                                   |     |     USD in 
  thousands |
| Consideration attributed to the Loan, at amortized cost – host contract           |     |        204 |
| Consideration attributed to the conversion component and the financial derivative |     |      1,038 |
| Total consideration less the issuance expenses                                    |     |      1,242 |

The fair value estimate of the financial derivative component was completed, and as of December 31, 2023, it was calculated as part of a valuation that was carried out using the Monte Carlo model and a binomial model. The parameters used in the calculation of the fair value according to the aforementioned model are:

|                                           |     | December 31 
        2023 |   |     | Completion 
       date |   |
|:------------------------------------------|:----|------------:|:--|:----|-----------:|:--|
| Share price                               |     |        59.3 |   |     |       60.4 |   |
| Volatility – conversion component of loan |     |          55 | % |     |         55 | % |
| Volatility – warrants                     |     |          73 | % |     |         73 | % |
| Risk-free interest – conversion component