Company: NCEL
Filing Date: 2025-09-03
Form Type: F-4/A
Source: 0001213900-25-084157
Chunk: 297

Company: NewcelX Ltd.
Filing Date: 2025-09-03
Form: F-4/A
Chunk 297
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 potential for enhanced value creation and operational efficacy. A significant portion of these conversations centered on the Exchange Ratio, a critical component of the transaction terms. The dialogue concerning the percentage split for the Exchange Ratio with respect to the percentage of shares that NLS shareholders would own of the combined company was particularly robust, with Kadimastem advocating for a range of 12 -15%, while NLS countered with a proposed range of 15 -17%, reflecting their respective strategic and valuation perspectives. The initial range was determined following a robust internal discussion at the board level of NLS, informed by the strategic objectives of the proposed transaction and supported by input from external financial and industry consultants. This preliminary relative valuation analysis considered multiple factors, including projected financial performance, the development stage and potential of key pipeline assets, market comparables within the biotechnology sector, historical trading data, and recent transaction benchmarks. The collaborative approach ensured that both internal perspectives and independent, third -partyinsights were fully integrated into establishing a valuation range that reflected the relative contributions of each party to the combined entity. Additional matters under consideration in negotiation included deal structure, valuation methodologies, closing conditions and timelines, legal risks such as pending litigation or disputes, employee -relatedissues encompassing contracts and benefits, and intellectual property and licensing considerations. The latter entailed ownership and transfer of patents, trademarks, and proprietary technology, as well as ongoing licensing agreements, third -partydependencies, and their implications for research, development, and innovation strategies moving forward. Further topics encompassed shareholder approvals, human resource allocations — notably the leadership of the DOXA program — integration plans, post -Mergerstrategies, and decisions regarding branding and corporate identity, including the selection of a new name for the combined entity. In the course of these negotiations, Kadimastem specifically requested that Alexander Zwyer remain on the board of directors for a period of one year following the date of Closing, underscoring their interest in maintaining continuity and expertise during the transitional phase. On August 25, 2024, Sullivan sent a revised draft of the Merger Agreement to Pearl Cohen, which included comments regarding the representations and warranties, post -closingboard of directors, and the proposed exchange ratio. The parties initially agreed to confirm the representations and warranties for both parties. On August25, 2024, Mr.Zwyer and Mr.Twito had a call to discuss the potential role and engagement of Eric Konofal in the combined company after the Merger. On August29, 2024, NLS and