Company: NCEL
Filing Date: 2025-09-03
Form Type: F-4/A
Source: 0001213900-25-084157
Chunk: 316

Company: NewcelX Ltd.
Filing Date: 2025-09-03
Form: F-4/A
Chunk 316
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 analysis through performed a DCF Analysis of the estimated future unlevered free cash flows attributable to Kadimastem for the fiscal years of 2024 through 2031. In applying the DCF Analysis, Newbridge relied on the financial projections and forecasts prepared by Moore that estimated certain revenue growth rates and cashflow margins. Moore applied a discount rate of 19%. The discount rate was determined using the weighted average cost of capital (WACC) method, which has many inputs, with key variables including the Israeli Income Tax Rate of 23.0%, the Risk -FreeRate of Return (Rf) using the 10 -yearbond yield of 1.81%, a Levered Beta variable of 0.09x for the public comparable data set used for the public comparable analysis, a size premium of 10.73% Duff & Phelps, a Specific premium of 17%, a cost of equity premium of 33.23%, and a market premium variable of 4.2% for the Damodaran (USA). Moore then performed a sensitivity analysis for the value of Kadimastem in relation to two parameters, market penetration and royalty rates. The two parameters sensitivity analysis was performed individually for each of the parameters (meaning that the analysis was performed for the market penetration without changes to the royalty rates, and vice versa). The results are as follows: •Sensitivity to market penetration: Moore analyzed the change in Kadimastem value if the market penetration parameter is up and down 3% (e.g. if market penetration parameter was originally set to 15% then Moore checked Kadimastem value for this parameter’s values of 12% and 18%). •Sensitivity to royalty rates: Moore analyzed the change in Kadimastem value if the royalty rates parameters are up and down 2% (e.g. if royalty rate parameter was originally set to 10% then we checked the Kadimastem value for this parameter’s values of 8% and 12%). Based on the above DCF Analysis and sensitivity analysis, Moore determined that Kadimastem’s value is between $54million and $88million. On the date immediately prior to the Merger, July26, 2024, NLS’s closing price per share on the Nasdaq was $7.60, with a market capitalization of $25,203,492, and Kadimastem’s price per share on the Tel Aviv Stock Exchange was $1.47, with a market