Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 148

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4
Chunk 148
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 the Merger Agreement and the transactions contemplated therein.

The Merger Agreement contains
representations, warranties and covenants by the Company, Merger Sub, and Kadimastem that are customary for a transaction of this nature,
including among others, covenants regarding the conduct of the Company’s business during the pendency of the transactions contemplated
by the Merger Agreement, the conduct of Kadimastem’s business during the pendency of the transactions contemplated by the Merger
Agreement, public disclosures and the use of reasonable best efforts to make all filings required by governmental entities following the
execution of the Merger Agreement. In addition, certain covenants require each of the parties to use, subject to the terms and conditions
of the Merger Agreement, their reasonable best efforts to consummate the Merger.

The Merger Agreement contains
closing conditions that are customary for a transaction of this nature, including the requirement for approval by the shareholders of
each of Kadimastem and the Company. The Merger has been approved by the shareholders of Kadimastem and is expected to be voted upon by
the shareholders of the Company. In addition, the Merger Agreement requires the Company to have paid off, redeemed or satisfied all of
its trade and vendor payables, and all of its debts to its officers, directors and shareholders. The Merger Agreement requires the Company
to have at least $600,000 in cash at the Closing and requires Kadimastem to have at least $3,500,000 in cash at the Closing, in each case
subject to adjustments as set forth in the Merger Agreement.

The Exchange Ratio will be determined based on
a formula that is expected to result in the number of issued and outstanding Kadimastem Ordinary Shares (calculated on a fully-diluted
basis, inclusive of Kadimastem Ordinary Shares resulting from the conversion of Kadimastem’s equity awards) being exchanged for
that certain number of newly issued Common Shares that will equal 85% of all issued and outstanding shares (calculated on a fully-diluted
basis, inclusive of Kadimastem’s equity awards assumed by NLS), subject to the adjustments as set forth in the Merger Agreement,
including: (i) the amount of any proceeds received by NLS in connection with the sale of Common Shares to investors introduced to
NLS by Kadimastem or its representatives, in each case during the period following the Signing Date (as defined in