Company: NCEL
Filing Date: 2025-03-31
Form Type: F-4/A
Source: 0001213900-25-026428
Chunk: 307

Company: NewcelX Ltd.
Filing Date: 2025-03-31
Form: F-4/A
Chunk 307
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 2024, we entered into a securities purchase agreement with an accredited investor to satisfy $4.0 million of our debt by issuing 806,452 newly designated convertible preferred shares at a purchase price of $4.96 per share. The preferred shares have a conversion price of $4.96 per share. The investor was granted the right to purchase up to an additional $10.0 million worth of convertible preferred shares starting six months after the closing and continuing as long as they own preferred shares. The investor also has the right to participate in up to 50% of future offerings for one year following the closing. We agreed not to enter into an equity line of credit or similar agreement without the consent of the majority of the preferred shareholders. This transaction also closed on October 10, 2024. On October 10, 2024, we successfully implemented a restructuring measure by converting the claims of related party debt holders in the amount of $2,788,650 into 493,986 common shares. This conversion was facilitated through an ordinary capital increase, providing the necessary shares for the debt holders. As of October 10, 2024, we believe we have regained compliance with the minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2), as our common shares have traded above $1.00 for ten consecutive trading days. Since the fiscal year ended December 31, 2023, we have undertaken a number of actions which have increased our shareholders’ equity, including, among other actions, (i) the sale of securities for approximately $3.2 million in net proceeds, and (ii) the exchange of certain debt into NLS Preferred Shares. As a result of these actions, we believe that we satisfy the shareholders’ equity requirement of at least $2.5 million pursuant to Nasdaq Listing Rule 5550(b)(1) for continued listing on the Nasdaq Capital Market. On January14, 2025, the shareholders of NLS approved a change in the par value of the NLS Common Shares from CHF 0.80 to CHF 0.03 per share, effective January17, 2025. 164 Operating Results Operating Expenses The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our financial statements and the related notes included in NLS’s Annual Report on Form 20 -Ffor the year ended December31, 2023, which is attached to this document as Annex F and is incorporated by reference into