Company: NCEL
Filing Date: 2025-10-17
Form Type: POS AM
Source: 0001213900-25-099986
Chunk: 70

Company: NewcelX Ltd.
Filing Date: 2025-10-17
Form: POS AM
Chunk 70
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 the Company elects to sell to Alpha pursuant to the ELOC SPA will be 95% of the volume weighted average price of the common shares during the applicable purchase date on which the Company has timely delivered written notice to Alpha directing it to purchase Company common shares under the ELOC SPA. In connection with the execution of the ELOC SPA, the Company issued a pre -fundedwarrant to purchase 192,308common shares at par value as consideration for its irrevocable commitment to purchase the common shares upon the terms and subject to the satisfaction of the conditions set forth in the ELOC SPA. As of June 30, 2025, no shares have been sold under the ELOC SPA. The Company has reflected the estimated fair value of the pre -fundedwarrants of $ 296,154issued to Alpha in connection with the ELOC SPA as a deferred offering cost and additional paid -incapital which is included in prepaid expenses and other current assets on the accompanying balance sheet as of June 30, 2025. The pre -fundedwarrants estimated fair value was based on the market price of Company’s common shares of $ 1.54on the date issued, since the exercise price is equal to par value or de minimis. Annex A-16 NLS PHARMACEUTICS LTD.
NOTES TO THE UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS Deemed Dividends Down Round Provision Triggers The Company has issued and outstanding Preferred Shares and warrants to purchase common shares that include down round provisions. During the six months ended June 30, 2025, these down -roundprovisions were triggered twice when the Company sold common shares at $ 3.10in January 2025 (the “January 2025 Trigger”) and sold Preferred Shares and common share warrants for $ 1.65in March and June 2025 (the “March 2025 Trigger”). The January 2025 Trigger resulted in the reduction of the conversion price of the 806,452Preferred Shares issued in October 2024 of $ 4.96to $ 3.10. The reduction in conversion price was applied to all 806,452Preferred Shares issued in October 2024, even 600,000Preferred Shares converted into common shares prior to the January 2025 Trigger. This was due to the Company executing the sale of a securities purchase agreement in December 2024, (December 2024 SPA”) and delays of the