Company: NCEL
Filing Date: 2025-02-10
Form Type: F-3
Source: 0001213900-25-011823
Chunk: 37

Company: NewcelX Ltd.
Filing Date: 2025-02-10
Form: F-3
Chunk 37
---
ation of the Merger, and NLS and Kadimastem shareholders will exercise less influence over management than they exercised before the Merger.

NLS’s shareholders have
the right to vote in the election of the Board and on certain other matters affecting NLS, as specified in NLS Bylaws, and Kadimastem’s
shareholders have the right to vote in the election of the Kadimastem board of directors and on certain other matters affecting Kadimastem,
as specified in Kadimastem the Kadimastem Bylaws. As a result of the Merger, the ownership position of existing shareholders of NLS will
decrease and Kadimastem’s shareholders will have an ownership position in NLS that is smaller than their current stake in Kadimastem.
Upon consummation of the Merger, the cash balance of NLS as of December 20, 2024,, NLS and Kadimastem estimate that NLS’s shareholders
immediately prior to the Merger (in their capacities as such) will own approximately 20% of the Common Shares outstanding immediately
after the Merger, respectively, and the Kadimastem’s shareholders immediately prior to the Merger (in their capacities as such)
will own approximately 80% of the Common Shares outstanding immediately after the Merger, in each case, without taking into account whether
any of NLS’s or Kadimastem’s shareholders were also shareholders of NLS or Kadimastem, respectively, at that time. Consequently,
NLS’s and Kadimastem shareholders will have less influence over the management and policies of NLS after the Effective Time than
they currently exercise over the management and policies of NLS and Kadimastem, respectively.

<div align='center'>31</div>

NLS’ and Kadimastem’s
directors and executive officers may have interests in the Merger that are different from, or in addition to, the interests of NLS and
Kadimastem shareholders generally. This may create potential conflicts of interest or the appearance of such conflicts, which may lead
to increased dissident shareholder activity, including litigation, which could result in significant costs for NLS and Kadimastem and
could materially delay or prevent the completion of the Merger.

The interests of NLS’ and Kadimastem’s directors and executive officers include, among other things, the continued service as a director or executive officer of NLS following the Merger