Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 147

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4
Chunk 147
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 and estimated closing indebtedness of NLS. The target fully diluted share split of 85% / 15% is subject to
adjustment pursuant to the terms of the Merger Agreement, including as a result of estimated closing cash of NLS and Kadimastem and estimated
closing indebtedness of NLS.

The Merger Agreement provides
that, upon the terms and subject to the conditions thereof, following the Closing, the Company shall work diligently to dispose of any
intellectual property, assets, rights, contracts, agreements, leases, arrangements (regardless of form), approvals, licenses, permits,
whether current or future, whether or not contingent, of the Company and its subsidiaries related solely to any product candidate of the
Company and its subsidiaries including Quilience and Nolazol, but other than the Company’s Dual Orexin Agonist platform, or such
assets to be disposed, the Legacy Assets. It is expected that the proceeds from any such disposition will be distributed to the shareholders
and warrantholders of the Company as of immediately prior to the Effective Time pursuant to the terms and conditions of the CVR Agreement,
subject to the adjustments set forth therein.

At the Effective Time, each:

  Kadimastem                                                                                                                                   

  option,                                                                                                                                      

  each                                                                                                                                            

In addition, several convertible
loans issued to Kadimastem will be converted into equity securities of Kadimastem upon Closing, including (1) a loan to the Company from
certain lenders, including Alpha Capital Anstalt, in the amount of $1.7 million; and (2) a loan from Michel Revel in the amount of
NIS 3.4 million. Under the Merger Agreement, any shareholder receiving common shares in excess of a 9.99% beneficial ownership limitation
as a result of the Merger, shall be issued instead pre-funded warrants exercisable for a number of common shares in excess of the
beneficial ownership limitation, at an exercise price equal to the par value of the common shares as of the Effective Time, which, in
any event, shall be no less than CHF 0.0001 per share.

The Merger Agreement and the
consummation of the transactions contemplated thereby have been approved by the Company’s board of directors, or the Board, and
Kadimastem’s board of directors and shareholders. The Board has resolved, subject to customary exceptions, to recommend that the
shareholders of the Company approve