Company: NCEL
Filing Date: 2025-02-10
Form Type: F-3
Source: 0001213900-25-011823
Chunk: 48

Company: NewcelX Ltd.
Filing Date: 2025-02-10
Form: F-3
Chunk 48
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 values it
receives for its assets in liquidation or dissolution could be significantly lower than the values reflected in its financial statement.

Increased operating and capital costs could affect NLS’ profitability.

Costs for any particular product
are subject to variation due to a number of factors, such as regulatory costs and research and development expenses. In addition, costs
are affected by the price and availability of input commodities, electricity, labor, chemical reagents, and processing related equipment
and facilities. Product costs are, at times, subject to volatile price movements, including increases that could make production at certain
operations less profitable. Further, changes in laws and regulations can affect product prices, uses and transport. Reported costs may
also be affected by changes in accounting standards. A material increase in costs could have a significant effect on NLS’ profitability
and operating cash flow.

NLS could have significant
increases in capital and operating costs over the next several years in connection with the development of new projects and in the
sustaining and/or expansion of existing operations. Costs associated with capital expenditures may increase in the future as a result
of factors beyond NLS’ control. Increased capital expenditures may have an adverse effect on the profitability of and cash flow
generated from existing operations, as well as the economic returns anticipated from new projects.

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NLS may seek to grow through acquisitions.

NLS may seek to grow through
acquisitions. Factors which may affect its ability to grow successfully through acquisitions include:

| ● | inability to obtain financing; |

| ● | difficulties and expenses in connection with integrating the acquired companies and achieving the expected benefits; |

| ● | diversion of management’s attention from current operations; |

| ● | the possibility that it may be adversely affected by risk factors facing the acquired companies; |

| ● | acquisitions could be dilutive to earnings, or in the event of acquisitions made through the issuance of our Common Shares to the shareholders of the acquired company, dilutive to the percentage of ownership of its existing shareholders; |

| ● | potential losses resulting from undiscovered liabilities of acquired companies not covered by the indemnification that it may obtain from the seller; and |

| ● | loss of key employees of the acquired companies. |

The potential termination of the Merger Agreement and related uncertainties could negatively impact NLS’ business.

The Merger Agreement is subject
to several conditions, including approval by NLS’ shareholders, which must be met or waived prior to the Merger’s completion.