Company: NCEL
Filing Date: 2025-03-31
Form Type: F-4/A
Source: 0001213900-25-026428
Chunk: 82

Company: NewcelX Ltd.
Filing Date: 2025-03-31
Form: F-4/A
Chunk 82
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3.161, each as calculated and converted from NIS to dollars based on a conversion rate of 3.645 on such day. However, due to reduced market liquidity on the TASE over the past twelve months (as a result of the war in the Middle East), Moore prepared its valuation of Kadimastem based on a discounted cash flow valuation model and economics review. In order to examine the fairness of the Exchange Ratio proposed in the Merger, Moore calculated the relative values of both NLS and Kadimastem, and then calculated each party’s relative part from the combined company (which was assumed to be at an aggregate value of Kadimastem and NLS). Since Kadimastem was valued at $71.1million (using Risk -AdjustedNet Present Value method) and NLS was valued at $11million to $12million (Using Market Value approach), the combined company was assumed to be at an aggregate value of $82.1million to $83.1million. Therefore, Kadimastem’s relative part in the combined company’s value is 85% -86% while NLS’s relative part is 14% -15%. The proposed Merger ratio is 85% for Kadimastem and 15% for NLS, which is almost the exact ratio determined from the valuations, and hence was found to be fair. Based on the cash balance of NLS following its most recent financing transactions from October 2024 and December 2024 (for more information please see “ NLS’s Management’s Discussion and Analysis of Financial Condition and Results of Operations — Financing Activities” in this proxy statement/prospectus), the parties currently estimate the fully diluted share split at the Closing will be 80% to Kadimastem shareholders and 20% to NLS shareholders. 13 For a summary of Moore’s fairness opinion and valuation report, please see page 106. The fairness opinion was not prepared for the benefit of NLS’s shareholders and accordingly, NLS’s shareholders are not entitled to rely on the fairness opinion. Additionally, the fairness opinion does not opine on the fairness of the Exchange Ratio to NLS or NLS’s shareholders. Interests of NLS’s and Kadimastem’s Directors and Executive Officers in the Merger (Page 111) In considering the recommendation of NLS Board to vote in favor of the Merger, shareholders should be aware that, aside from their interests as shareholders, certain of NLS’s directors and executive officers