Company: NCEL
Filing Date: 2025-09-03
Form Type: F-4/A
Source: 0001213900-25-084157
Chunk: 177

Company: NewcelX Ltd.
Filing Date: 2025-09-03
Form: F-4/A
Chunk 177
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 the right to acquire NLS Common Shares at a fixed price for a limited period of time. Specifically, holders of the Warrants NLS has issued may exercise their right to acquire the NLS Common Shares and pay an exercise price per common share as contemplated in such holder’s Warrant, prior to five years from the date of issuance, after which date any unexercised Warrants will expire and have no further value. If NLS was to be characterized as a “passive foreign investment company” for U.S. tax purposes, U.S. holders of its NLS Common Shares and Warrants could have adverse U.S. income tax consequences. In general, NLS will be treated as a passive foreign investment company, or a PFIC, for U.S. federal income tax purposes in any taxable year in which either (1) at least 75% of its gross income is “passive income” or (2) on average at least 50% of its assets by value produce passive income or are held for the production of passive income. Passive income for this purpose generally includes, among other things, certain dividends, interest, royalties, rents and gains from commodities and securities transactions and from the sale or exchange of property that gives rise to passive income. Passive income also includes amounts derived by reason of the temporary investment of funds, including those raised in a public offering. In determining whether a non -U.S. corporation is a PFIC, a proportionate share of the income and assets of each corporation in which it owns, directly or indirectly, at least a 25% interest (by value) is taken into account. NLS does not believe that NLS will be deemed a PFIC for 2024. If NLS is a PFIC in any taxable year during which a U.S. taxpayer holds the NLS Common Shares and Warrants, such U.S. taxpayer would be subject to certain adverse U.S. federal income tax rules. In particular, except with respect to the Warrants (unless exercised), if the U.S. taxpayer did not make an election to treat it as a “qualified electing fund,” or QEF, or make a “mark -to-market” election, then “excess distributions” to the U.S. taxpayer, and any gain realized on the sale or other disposition of the NLS Common Shares by the U.S. taxpayer: (1) would be allocated ratably over the U.S. taxpayer’s holding period for the NLS Common Shares; (2)