Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 285

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4
Chunk 285
---

are not addressed.

Each prospective investor
is advised to consult his or her own tax adviser for the specific tax consequences to that investor of purchasing, holding or disposing
of our common shares, including the effects of applicable state, local, foreign or other tax laws and possible changes in the tax laws.

Exercise or Expiry of Warrants

No gain or loss will be realized
on the exercise of a Warrant. When a Warrant is exercised, the U. S. Holder’s cost of the common share acquired thereby will be equal
to the U. S. Holder’s adjusted cost basis of the Warrant plus the exercise price paid for the common share. The expiry of an unexercised
Warrant will generally give rise to a capital loss equal to the adjusted cost basis to the U. S. Holder of the expired Warrant. The holding
period of the common share acquired through the exercise of a Warrant includes the holding period of the Warrant. See “ Passive Foreign
Investment Companies,” for the impact of the exercise of a Warrant on taxation of a U. S. Holder if we are a PFIC.

Taxation of Dividends Paid on Common Shares

We do not intend to pay dividends
in the foreseeable future. In the event that we do pay dividends, and subject to the discussion under the heading “ Passive Foreign
Investment Companies” below and the discussion of “qualified dividend income” below, a U. S. Holder, other than certain
U. S. Holders that are U. S. corporations, will be required to include in gross income as ordinary income the amount of any distribution
paid on common shares (including the amount of any Swiss tax withheld on the date of the distribution), to the extent that such distribution
does not exceed our current and accumulated earnings and profits, as determined for U. S. federal income tax purposes. The amount of a
distribution which exceeds our earnings and profits will be treated first as a non-taxable return of capital, reducing the U. S. Holder’s
tax basis for the common shares to the extent thereof, and then capital gain. We do not expect to maintain calculations of our earnings
and profits under U. S. federal income tax principles and, therefore, U. S. Holders should expect that the entire amount of any distribution
generally will be reported as dividend income.

In general, preferential tax
rates for “qualified dividend income” and long-term capital gains are applicable for U. S