Company: NCEL
Filing Date: 2025-09-03
Form Type: F-4/A
Source: 0001213900-25-084157
Chunk: 107

Company: NewcelX Ltd.
Filing Date: 2025-09-03
Form: F-4/A
Chunk 107
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 Additionally, NLS’s legacy assets, including mazindol, are expected to be divested through the CVR Agreement, with proceeds distributed to the CVR Recipients pursuant to the terms and conditions of the CVR Agreement, subject to the adjustments set forth therein. This strategy aims to optimize asset utilization and provide direct financial benefits to shareholders. 10 •Stronger Growth Potential: A unified market presence potentially offers more robust long -termgrowth opportunities. •Risks •Stock Volatility: Uncertainty surrounding the Merger could lead to fluctuations in stock prices. •Dissenting Shareholders: Some shareholders may oppose the Merger, leading to resistance or legal action. Risk Diversification Considerations •Advantages •Product or Service Diversification: Merging portfolios reduces dependency on a single product or market. •Geographic Diversification: Operating in diverse regions mitigates exposure to regional downturns. •Customer Base Expansion: Broadening the customer base reduces reliance on a few key clients. •Risks •Complexity in Managing Multiple Markets: Different regulatory requirements, economic conditions, and customer behaviors could create challenges. •Brand Positioning Conflicts: If NLS and Kadimastem have different brand identities, customers may struggle to understand the new value proposition and or story. •Risk Concentration in Certain Markets: If the Merger does not achieve its intended diversification, the combined company may become overexposed to certain high -riskareas. Cultural and Vision Alignment •Advantages •Shared Mission: Aligning strategic goals unifies purpose. •Cultural Compatibility: A strong cultural fit is expected to ensure smoother integration and employee retention. •Risks •Loss of Corporate Identity: If one company’s culture dominates, employees of the other company may feel marginalized. •Employee Resistance: Resistance to change may lead to decreased productivity and engagement. •Leadership Clashes: Differences in leadership style and decision -makingprocesses could create friction at the executive level. Access to Resources •Advantages •Capital and Financing: Greater financial resources facilitate investment in growth areas. •Intellectual Property (IP): Combining IP assets strengthens competitive positioning. •Talent Pool: Retaining top talent enhances operational capabilities. 11 •Risks •Overestimated Resource Availability: Anticipated capital, talent retention, or IP benefits may not fully materialize. •Debt Accumulation: If the Merger involves significant debt financing, it could strain financial stability. •Regulatory Barriers: Accessing new markets or intellectual property may require additional compliance efforts