Company: NCEL
Filing Date: 2025-11-06
Form Type: POS AM
Source: 0001213900-25-106799
Chunk: 8

Company: NewcelX Ltd.
Filing Date: 2025-11-06
Form: POS AM
Chunk 8
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astem shareholders will hold 85% of the issued and outstanding shares of the merged company and the existing shareholders of NLS will hold the remaining 15% of the issued and outstanding shares of NLS. The business combination will be accounted for using the acquisition method in accordance with IFRS 3 — Business Combinations (as a reverse acquisition ). Under this approach, Kadimastem is identified as the accounting acquirer and NLS as the accounting acquiree (legal acquirer). Consequently, the post -combinationfinancial statements will reflect the historical results of Kadimastem, with a step -upto fair value for the identifiable assets and liabilities of NLS and recognition of any resulting goodwill or other identifiable intangible assets in accordance with IFRS 3. This conclusion is based on the fact that, upon closing, Kadimastem is expected to obtain control of the combined company’s board of directors and senior management, and Kadimastem’s pre -existingshareholders will hold the majority voting interest in the combined entity. Components of Operating Results Licensing Agreement In February 2019, NLS entered into a license agreement or the EF License Agreement, with Eurofarma Laboratorios S.A., or Eurofarma, which provided Eurofarma with an exclusive, fee -bearing, non -transferrable(i) distribution right to distribute Nolazol in Latin America and an (ii) exclusive, fee -bearing, non -transferrablelicense to NLS’s patents and trademarks in connection with the commercialization, if any, of Nolazol in Latin America. The EF License Agreement was in effect until the later of either (i) ten years from the date of its execution, or until February 2029, or (ii) until the expiration of the last valid patent relating to Nolazol, subject to early termination under certain circumstances. Pursuant to the terms of the EF License Agreement, NLS was responsible for obtaining regulatory approval to market and commercialize Nolazol in the United States and Eurofarma was responsible for obtaining regulatory approval in South America; provided, however, that Eurofarma would inform NLS of any additional information that regulators in Latin America may require in order to seek marketing authorization which otherwise may not be required by the FDA, or the Supplemental U.S. Data. Upon the execution of the EF License Agreement, Eurofarma paid NLS $2.5 million. In accordance with the EF License Agreement, NLS was