Company: NCEL
Filing Date: 2025-10-17
Form Type: POS AM
Source: 0001213900-25-099986
Chunk: 8

Company: NewcelX Ltd.
Filing Date: 2025-10-17
Form: POS AM
Chunk 8
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 the issuance of the financial statements included elsewhere in this Report on Form 6 -K. Our financial statements have been presented on the basis that we are a going concern, which contemplates the realization of revenues and the satisfaction of liabilities in the normal course of business. We have incurred losses from the inception of our operations. These factors raise substantial doubt about our ability to continue as a going concern. Merger Agreement In July 2024, we entered into a binding term sheet with Kadimastem, a clinical -stagecell therapy company developing and manufacturing “off -the-shelf” allogeneic cell products for the treatment of neurodegenerative diseases and potential cure of diabetes, whereby Kadimastem will become our wholly owned subsidiary, and Kadimastem’s shareholders will acquire an 85% interest in NLS, or the Transaction. Upon completion of the Transaction, which is subject to, among other things, approval by NLS and Kadimastem shareholders, the combined company is expected to operate under 3 the name Kadimastem and be traded on the Nasdaq Capital Market. Under the proposed terms, existing Kadimastem shareholders will hold 85% of the issued and outstanding shares of the merged company and the existing shareholders of NLS will hold the remaining 15% of the issued and outstanding shares of NLS. The business combination will be accounted for using the acquisition method in accordance with IFRS 3 — Business Combinations (as a reverse acquisition ). Under this approach, Kadimastem is identified as the accounting acquirer and NLS as the accounting acquiree (legal acquirer). Consequently, the post -combinationfinancial statements will reflect the historical results of Kadimastem, with a step -upto fair value for the identifiable assets and liabilities of NLS and recognition of any resulting goodwill or other identifiable intangible assets in accordance with IFRS 3. This conclusion is based on the fact that, upon closing, Kadimastem is expected to obtain control of the combined company’s board of directors and senior management, and Kadimastem’s pre -existingshareholders will hold the majority voting interest in the combined entity. Components of Operating Results Licensing Agreement In February 2019, NLS entered into a license agreement or the EF License Agreement, with Eurofarma Laboratorios S.A., or Eurofarma, which provided Eurofarma with an exclusive, fee -bearing, non -transferrable(i) distribution right to distribute Nol