Company: NCEL
Filing Date: 2025-06-09
Form Type: F-4/A
Source: 0001213900-25-052354
Chunk: 79

Company: NewcelX Ltd.
Filing Date: 2025-06-09
Form: F-4/A
Chunk 79
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 •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. 10 •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. •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. While the NLS Board sees strong strategic, financial, and operational benefits in approving the Merger, significant risks remain. The success of the Merger will depend on careful execution, effective integration strategies, and proactive risk management. See “ Risk Factors — Risks Related to the Merger” in this proxy statement/prospectus. The Kadimastem Board considered various factors that supported its decision to approve the Merger Agreement, including: Strategic Synergies •Complementary Strengths: The combined expertise and product portfolio enhance the combined company’s ability to deliver comprehensive solutions. •Market Expansion: Operating in new geographies or market segments increases reach and diversification. •Strengthened Competitive Position: