Company: NCEL
Filing Date: 2025-02-10
Form Type: F-3
Source: 0001213900-25-011823
Chunk: 38

Company: NewcelX Ltd.
Filing Date: 2025-02-10
Form: F-3
Chunk 38
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 and certain rights to continuing indemnification and directors’ and officers’ liability insurance for Kadimastem directors and executive officers. There is a risk that these interests may influence the directors and executive officers to support the Merger.

The interests of NLS’s
and Kadimastem’s directors and executive officers in the Merger may increase the risk of litigation intended to enjoin or prevent
the Merger and the risk of other related dissident shareholder activity. In the past, and in particular following the announcement of
a significant transaction, periods of volatility in the overall market or declines in the market price of a company’s securities,
shareholder litigation and dissident shareholder proposals have often been instituted against companies alleging conflicts of interest
in business dealings with affiliated or related persons and entities. The relationships described above may precipitate such activities
by dissident shareholders and, if instituted against NLS or Kadimastem or their respective directors or executive officers, such activities
could result in substantial costs, a material delay or prevention of the Merger and a diversion of management’s attention, even
if the shareholder action is without merit or unsuccessful.

The Merger is subject to the satisfaction or waiver of conditions that may not be satisfied or completed on a timely basis, if at all. Failure to consummate the Merger could adversely affect the future business and financial results of NLS.

The consummation of the Merger
is subject to the satisfaction or waiver of a number of conditions, including, among others, that the representations and warranties of
the parties are true and correct in all respects as of the closing date, NLS has at least USD $600,000 in gross funds (including cash
in any of its bank accounts) plus any proceeds received by NLS from certain parties in connection with its financing transactions undertake
after the execution of the Merger Agreement, Kadimastem has at least USD $3,500,000 in gross funds (including cash in any of its bank
accounts) minus any proceeds received by NLS from certain parties in connection with its financing transactions undertaken after the execution
of the Merger Agreement, Kadimastem’s receipt of certain tax rulings provided by Israeli Tax Authority and the Israel Securities
Authority. These conditions make the completion, and the timing of the completion, of the Merger uncertain.

NLS and Kadimastem cannot
provide assurance that the Merger will be consummated on the terms or timeline currently contemplated, or at all. If the Merger is not