Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 138

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 3
Chunk 138
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 Israel

Potential political, economic and military
instability in the State of Israel, where its headquarters, members of its management team, its production and research and development
facilities are located, may adversely affect its results of operations.

The combined company’s
executive offices, research and development laboratories and manufacturing facility are located in Ness-Ziona, Israel. In addition, the
majority of its key employees, officers and directors are residents of Israel. Accordingly, political, economic and military conditions
in Israel may directly affect its business. Since the establishment of the State of Israel in 1948, a number of armed conflicts have taken
place between Israel and groups in its neighboring countries, including Hamas (an Islamist militia and political group that has historically
controlled the Gaza Strip) and Hezbollah (an Islamist militia and political group based in Lebanon). In addition, several countries, principally
in the Middle East, restrict doing business with Israel, and additional countries may impose restrictions on doing business with Israel
and Israeli companies whether as a result of hostilities in the region or otherwise. Any hostilities involving Israel, terrorist activities,
political instability or violence in the region or the interruption or curtailment of trade or transport between Israel and its trading
partners could adversely affect its operations and results of operations and the market price of its Common Shares.

Conditions in the Middle East and in Israel,
where its research and development facilities are located, may harm its operations.

The combined company’s
office where the combined company conducts its research and development, operations, sales outside the Americas, and administration activities,
is located in Israel. Many of the combined company’s employees are residents of Israel. Most of the combined company’s executive
officers and directors are residents of Israel. Accordingly, political, economic and military and security conditions in Israel and the
surrounding region may directly affect our business. Since the establishment of the State of Israel in 1948, a number of armed conflicts
have taken place between Israel and its neighboring countries, and between Israel and the Hamas (an Islamist militia and political group
in the Gaza Strip) and Hezbollah (an Islamist militia and political group in Lebanon). Ongoing and revived hostilities in the Middle East
or other Israeli political or economic factors, could harm our operations.

In particular, in October 2023,
Hamas terrorists infiltrated Israel’s southern border from the Gaza Strip and conducted a series of attacks on civilian and military
targets. Hamas also launched extensive rocket attacks on the Israeli population and industrial centers located