Company: NCEL
Filing Date: 2025-07-29
Form Type: F-4/A
Source: 0001213900-25-068765
Chunk: 801

Company: NewcelX Ltd.
Filing Date: 2025-07-29
Form: F-4/A
Chunk 801
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LS PHARMACEUTICS LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Note 10 Equity: Preferred Shares In October 2024, the Company amended and restated its Articles of Association to designate 806,452of preferred shares with a par value of 0.80CHF in connection with the execution of a securities purchase agreement. The preferred shares have the following rights, preferences and privileges: •Accrue dividends at an annual rate of eight percent ( 8%) of the stated value of the preferred shares from the date of issuance; •Stated value and initial conversion price of $ 4.96, subject to adjustment, for stock splits, dividends and subsequent equity sales and issuances below the initial conversion price; •Have no voting rights; Upon any liquidation, dissolution or winding up of the Company, the preferred shareholders will be entitled to receive an amount equal to the stated value of any preferred shares held at the time of such an event prior to any holders of common shares. On October 9, 2024, the Company entered into a securities purchase agreement, or the Debt Purchase Agreement, with an accredited investor, pursuant to which in exchange for the satisfaction of the Company’s debt in the aggregate amount of $ 4.0million held by the investor, the Company agreed to issue 806,452newly designated convertible preferred shares, at a purchase price of $ 4.96(rounded). The preferred shares contain an initial conversion price of $ 4.96per share. The transactions contemplated by the Debt Purchase Agreement closed on October 10, 2024. Pursuant to the Debt Purchase Agreement, the Company agreed to grant the investor the right to purchase up to an additional $ 10.0million worth of convertible preferred shares beginning six months after the closing and continuing for as long as the investor owns preferred shares. Any additional preferred shares issued upon the investor’s right being exercised will be identical to the initial preferred shares except the conversion price will be based on the average daily closing sale price of common shares for the five trading days prior to the investor giving notice of its intent to exercise its rights. Additionally, pursuant to the Debt Purchase Agreement, the Company agreed to grant the investor the right to participate in up to fifty percent ( 50%) of future offerings of the Company’s securities for one year following the closing. In addition, the Company agreed not to enter into an equity line of credit or similar agreement, without the consent of the majority of