Company: NCEL
Filing Date: 2025-03-03
Form Type: F-4/A
Source: 0001213900-25-018981
Chunk: 75

Company: NewcelX Ltd.
Filing Date: 2025-03-03
Form: F-4/A
Chunk 75
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ruptions: Combining teams, research pipelines, and strategic visions could slow down product development and delay time -to-market. Shareholder Considerations •Advantages •Increased Value: The Merger is anticipated to enhance financial performance and potentially increase returns for shareholders through several key avenues: •Diversified and Advanced Product Pipeline: By combining their resources, NLS and Kadimastem will boast a robust portfolio targeting significant medical needs. NLS contributes its Dual Orexin Receptor Agonist platform, focusing on treatments for sleep disorders and neurodegenerative diseases. Kadimastem adds its cell therapy products, including AstroRx® for ALS and IsletRx for diabetes. This diversified pipeline enhances the potential for successful product development and subsequent revenue generation. •Enhanced Market Presence and Access to Capital: The Merger is structured to result in a larger Nasdaq -tradedbiotechnology company, increasing visibility and credibility in the U.S. capital markets. This enhanced market presence is expected to facilitate better access to funding opportunities, supporting ongoing and future research and development initiatives. •Operational and Financial Synergies: The consolidation of NLS’s and Kadimastem’s operations is expected to yield cost efficiencies through streamlined processes and reduced overhead. These synergies can improve operational efficiency and financial performance, potentially leading to enhanced earnings. •Strategic Focus and Asset Optimization: Post -Merger, the combined company plans to focus on advancing Kadimastem’s cell therapy platform while continuing the development of NLS’s DOXA program. Additionally, NLS’s legacy assets, including mazindol, are expected to be divested through the CVR Agreement, with proceeds distributed to current NLS shareholders. This strategy aims to optimize asset utilization and provide direct financial benefits to shareholders. •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