Company: NCEL
Filing Date: 2025-03-03
Form Type: F-4/A
Source: 0001213900-25-018981
Chunk: 866

Company: NewcelX Ltd.
Filing Date: 2025-03-03
Form: F-4/A
Chunk 866
---
 host contract. The embedded derivative component must be measured every period at fair value and the changes are then attributed to profit or loss (hereinafter, “Fair Value Through Profit or Loss”). As a result, when the convertible loan was initially recognized, the Company measured the fair 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). As part of the valuation performed at the Completion Date, the total consideration received by the Company in 2024 in the amount of approximately USD $450 thousand (NIS 1,692 thousand) was allocated first to the conversion component and a financial derivative in respect of the conversion mechanism which constitutes a financial liability measured initially and in subsequent reporting periods at Fair Value Through Profit or Loss, in accordance with the provisions of IFRS9, “Financial Instruments”. The balance of the amount was attributed to the debt component which will be presented at amortized cost at a discount rate of 309%. In the six- month period ended June30, 2024, financing expenses (interest and exchange rate differentials) were recorded for the loan in the amount of USD $441 thousand (NIS 1,629 thousand). In accordance with the above, the details of the consideration attributed to the components received during 2024 are as follows:

|                                                                                   |     |   Fair value 
          USD 
 in thousands |
| Consideration attributed to the Loan, at amortized cost – host contract           |     |           88 |
| Consideration attributed to the conversion component and the financial derivative |     |          362 |
| Total consideration                                                               |     |          450 |

b.The fair value estimate of the financial derivative component as of the Completion Date and June30, 2024, was calculated as part of a valuation that was carried out using a Monte Carlo model and a binomial model. The parameters used in the calculation of the fair value according to the aforementioned model are:

|                                           |     | June 30 
    2024 |   |     |        The 
 completion 
       date |   |
|:------------------------------------------|:----|--------:|:--|:----|-----------:|:--|
| Share price                               |     |    48.8 |   |     |       60.4 |   |
| Volatility – conversion component of