Company: NCEL
Filing Date: 2025-03-31
Form Type: F-4/A
Source: 0001213900-25-026428
Chunk: 212

Company: NewcelX Ltd.
Filing Date: 2025-03-31
Form: F-4/A
Chunk 212
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 Sullivan. Between August 17, 2024 and November 4, 2024, Sullivan and Pearl Cohen exchanged drafts and negotiated the terms of the definitive transaction agreements, including the Merger Agreement. Regular meetings by phone call and video conference took place during this period, some of which included the parties’ respective legal counsel and financial advisors. The terms negotiated between the parties, among others, included the representations and warranties of both NLS and Kadimastem to be contained in the Merger Agreement, the tax rulings to be obtained before the closing and the interim covenants to be contained in the Merger Agreement, including regarding the solicitation of alternative transactions, and the Company’s ability to access capital. On August19, 2024, August20, 2024, August21, 2024, and August23, 2024, a series of follow -upmeetings transpired among representatives of NLS, Kadimastem, Sullivan, and Pearl Cohen. During these engagements, the parties deliberated on a broad spectrum of topics pertinent to the Merger and the Merger Agreement. Among the focal points was an assessment of the cash reserves NLS would possess at the Effective Time of the Closing, ensuring a clear understanding of the financial posture of the combined entity at that juncture. Discussions frequently highlighted the prospective synergies and positive attributes anticipated from the union of NLS and Kadimastem, with an emphasis on the 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