Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 371

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 19
Chunk 371
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 services provided
did not meet the required standard of care and intends to defend its position. On 9 May 2025, the Company filed a statement of defense
and asserted a counterclaim in CHF30,000plus compensatory interests at a rate of5% per annum since June 29, 2022.

Note 10

Equity:

Preferred Shares

In October 2024, the Company amended and restated
its Articles of Association to designate806,452of preferred shares with a par value of0.80CHF 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;  
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  Stated value and initial conversion price of                                                                                              

  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 issue806,452newly 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