Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 123

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 3
Chunk 123
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 business matters. Restrictive covenants included in these future debt agreements may include restrictions
on, among other things, the combined company’s ability to:

  create or permit to subsist any security interest over any  

  sell, transfer or otherwise dispose of any or its receivables  

  pay dividends;  

  buy back its own common shares;  

  incur or permit additional indebtedness;  

  merge or conduct any other corporate reconstruction; and  

  change the nature of its business.  
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The combined company’s
ability to comply with these and other provisions of future debt agreements will depend on its future performance, which will be subject
to many factors, some of which are beyond its control. The breach of any negative covenants in these future agreements could result in
an event of default, as may be defined in such agreements, potentially leading to a default interest rate or immediate repayment of any
borrowed amounts. These restrictive covenants, which may be included in future debt agreements, and any lack of compliance by the combined
company could limit its flexibility in operating its business.

The use of any of the combined company’s
product candidates could result in product liability or similar claims that could be expensive, damage its reputation and harm its business.

The combined company’s
business exposes it to an inherent risk of potential product liability or similar claims. The pharmaceutical industry has historically
been litigious, and it faces financial exposure to product liability or similar claims if the use of any of its products were to cause
or contribute to injury or death. There is also the possibility that defects in the design or manufacture of any of its products might
necessitate a product recall. Although the combined company plans to maintain product liability insurance, the coverage limits of these
policies may not be adequate to cover future claims. In the future, the combined company may be unable to maintain product liability insurance
on acceptable terms or at reasonable costs and such insurance may not provide it with adequate coverage against potential liabilities.
A product liability claim, regardless of merit or ultimate outcome, or any product recall could result in substantial costs to the combined
company, damage to its reputation, customer dissatisfaction and frustration and a substantial diversion of management attention. A successful
claim brought against the combined company in excess of, or outside of, its insurance coverage could have a material adverse effect on
the combined company business, financial condition and results of operations.

Failure in its information technology systems,
including by cybersecurity attacks