Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 74

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 3
Chunk 74
---
of investors or securities analysts it could have a material adverse effect on your investment in common shares and common shares may
trade at prices significantly below the price you paid for them. In such circumstances, the trading price of common shares may not recover
and may experience a further decline.

Even if the Merger is completed, there is
no guarantee that any proceeds will be paid to NLS shareholders under the CVR Agreement.

Even if the Merger is completed,
there can be no assurance that any payments will be made to NLS shareholders under the CVR Agreement. The Contingent Value Rights provide
for potential payments to NLS shareholders based on the achievement of certain post-merger performance or milestone criteria. These criteria
depend on factors that are largely outside our control, such as the successful integration of the companies, the realization of anticipated
synergies, and the achievement of specific operational or financial targets within specified timeframes.

In addition, various risks,
uncertainties, and assumptions could impact the ability of the combined company to generate the necessary funds for such payments. These
include, but are not limited to, changes in market conditions, competitive pressures, regulatory developments, or unexpected costs that
may arise following the Merger. If the combined company is unable to achieve the necessary milestones or if additional unforeseen challenges
arise, it is possible that no payments will be made to NLS shareholders under the CVR Agreement.

Consequently, NLS shareholders
should understand that the CVR Agreement does not guarantee any future payments, and they may receive little or no proceeds from the CVR
Agreement in connection with the Merger.

Risks Related to NLS After the Consummation
of the Merger

Following the Merger, NLS intends to shift
its business focus to developing and manufacturing “off-the-shelf”, allogenic, proprietary cell products, which may not be
successful.

Following the Merger, NLS
intends to shift its business focus to developing and manufacturing “off-the-shelf”, allogenic, proprietary cell products,
which may not be successful. Planned operations and to grow and compete will depend on the availability of adequate capital. NLS cannot
assure you that it will be able to obtain equity or debt financing on acceptable terms, or at all, to adopt its new business, its planned
operations and to implement its growth strategy. As a result, NLS cannot assure you that adequate capital will be available to continue
its normal and planned operations and