Company: NCEL
Filing Date: 2025-06-09
Form Type: F-4/A
Source: 0001213900-25-052354
Chunk: 263

Company: NewcelX Ltd.
Filing Date: 2025-06-09
Form: F-4/A
Chunk 263
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 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 consideration in negotiation included deal structure, valuation methodologies, closing conditions and timelines, legal risks such as pending litigation or disputes, employee -relatedissues encompassing contracts and benefits, and intellectual property and licensing considerations. The latter entailed ownership and transfer of patents, trademarks, and proprietary technology, as well as ongoing licensing agreements, third -partydependencies, and their implications for research, development, and innovation strategies moving forward. Further topics encompassed shareholder approvals, human resource allocations — notably the leadership of the DOXA program — integration