Company: NCEL
Filing Date: 2025-02-10
Form Type: F-3
Source: 0001213900-25-011823
Chunk: 108

Company: NewcelX Ltd.
Filing Date: 2025-02-10
Form: F-3
Chunk 108
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 Israeli companies have been subjected to economic boycotts. Several countries still restrict business with the State
of Israel and with Israeli companies. These restrictive laws and policies may have an adverse impact on Kadimastem’s operating results,
financial condition or the expansion of its business.

Any hostilities involving
Israel or the interruption or curtailment of trade between Israel and its trading partners could adversely affect Kadimastem’s operations
and results of operations. In recent years, the hostilities involved missile strikes against civilian targets in various parts of Israel,
including areas in which Kadimastem’s employees and some of its consultants are located, and negatively affected business conditions
in Israel.

Kadimastem’s commercial
insurance does not cover losses that may occur as a result of events associated with the security situation in the Middle East. Although
the Israeli government currently covers the reinstatement value of direct damages that are caused by terrorist attacks or acts of war,
Kadimastem cannot assure you that this government coverage will be maintained. Any losses or damages incurred by Kadimastem could have
a material adverse effect on its business. Any armed conflicts or political instability in the region would likely negatively affect business
conditions and could harm Kadimastem’s results of operations.

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Finally, political conditions
within Israel may affect Kadimastem’s operations. Israel has held five general elections between 2019 and 2022, and prior to October
2023, the Israeli government pursued extensive changes to Israel’s judicial system, which sparked extensive political debate and
unrest. To date, these initiatives have been substantially put on hold. Actual or perceived political instability in Israel or any negative
changes in the political environment, may individually or in the aggregate adversely affect the Israeli economy and, in turn, Kadimastem’s
business, financial condition, results of operations and growth prospects.

Exchange rate fluctuations between the U.S. Dollar and the New Israeli Shekels, or NIS, may negatively affect Kadimastem’s earnings and could adversely affect its results of operations.

Kadimastem incurs expenses
in NIS, U.S. dollars, and Euros, but Kadimastem’s financial statements are denominated in NIS as its financial currency. Accordingly,
Kadimastem faces exposure to adverse movements in currency exchange rates. Accordingly, Kadimastem faces exposure to adverse movements
in the currency exchange rate of the NIS against these foreign currencies,