Company: NCEL
Filing Date: 2025-02-10
Form Type: F-3
Source: 0001213900-25-011823
Chunk: 90

Company: NewcelX Ltd.
Filing Date: 2025-02-10
Form: F-3
Chunk 90
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 is unable to continue to attract
and retain high quality personnel, its ability to pursue its growth strategy will be limited.

Certain agreements that Kadimastem entered into with its lenders contain, and future debt agreements may contain, restrictions that may limit its flexibility in operating its business.

Kadimastem
has entered into a credit facility with certain lenders which contained restrictions, such as prohibiting that Kadimastem merges into
another company or change its accounting standards, that could limit its flexibility in operating its business. Documents governing its
future indebtedness, or in connection with additional capital raises, if any, may contain, numerous financial and operating covenants
that limit the discretion of management with respect to certain business matters. Restrictive covenants included in the above-mentioned
credit facility include restrictions on, among others, Kadimastem’s ability to:

| ● | create or permit to subsist any security interest over any of its assets;        |
| ● | sell, transfer or otherwise dispose of any or its receivables on recourse terms; |
| ● | pay dividends;                                                                   |
| ● | buy back its own common shares;                                                  |

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| ● | incur or permit additional indebtedness;                 |
| ● | merge or conduct any other corporate reconstruction; and |
| ● | change the nature of its business.                       |

Kadimastem’s
ability to comply with these and other provisions of the existing debt agreements is dependent on its future performance, which will be
subject to many factors, some of which are beyond its control. The breach of any negative covenants in Kadimastem’s current
or future agreements could result in an event of default, as may be defined in such agreements, thereby leading to a potential default
interest rate or immediate repayment of any borrowed amounts. These restrictive covenants which may be in place from time to time and
a lack of compliance by Kadimastem could limit its flexibility in operating its business.

The use of any of Kadimastem’s product candidates could result in product liability or similar claims that could be expensive, damage its reputation and harm its business.

Kadimastem’s business
exposes it to an inherent risk of potential product liability or similar claims. The pharmaceutical industry has historically been litigious,
and it faces financial exposure to product liability or similar claims if the use of any of its products were to cause or contribute to
injury or death. There is