Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 351

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 19
Chunk 351
---
 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,
other than the Company’s Dual Orexin Agonist platform (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 warrant holders of the Company as of immediately
prior to the Effective Time pursuant to the terms and conditions of a contingent value rights agreement, (the “ CVR Agreement”).

F-9

At the Effective Time, each:

  Kadimastem Ordinary Share issued and outstanding immediately prior to the Effective Time will be exchanged                             

  option, restricted share unit, restricted share, warrant or other rights issued and outstanding, whether                                  

  each Company Common Share issued and outstanding immediately prior to the Effective time, and each Company                                      

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

The Merger Agreement contains customary termination
rights for each of the Company and Kadimastem, including the right of the Company and Kadimastem to terminate the Merger Agreement if
the Closing shall not have occurred on or before June 30, 2025. The Merger Agreement also provides that the Company shall pay to Kadimastem
a termination fee of $10.0million plus the Company Operating Expenses (as defined in the Merger Agreement), and the Transaction Expenses
(as defined in the Merger Agreement) if the Company terminates the Merger Agreement prior to obtaining the Parent Requisite Vote (as defined
in the Merger Agreement) to enter into a definitive agreement providing for a Parent Superior Proposal (as defined in the Merger Agreement)
in accordance with terms of the Merger Agreement.

Contingent Value Right Agreement

Prior to the Closing, the Company will enter into
the CVR Agreement with VStock Transfer, LLC, which will govern the terms of the CVRs. Each CVR will represent the right to additional
payments based on the proceeds, subject to certain adjustments,