Company: NCEL
Filing Date: 2025-07-18
Form Type: F-4/A
Source: 0001213900-25-065783
Chunk: 111

Company: NewcelX Ltd.
Filing Date: 2025-07-18
Form: F-4/A
Chunk 111
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 Moore has held discussions with certain members of the management of NLS and Kadimastem with respect to certain aspects of the Merger, and the past and current business operations of NLS and Kadimastem, the financial condition and future prospects and operations of the NLS and Kadimastem, and certain other matters Moore believed necessary or appropriate for its inquiry. Moore’s fairness opinion took into consideration Kadimastem’s trading price on TASE and market capitalization as of December19, 2024. On December19, 2024, the time of Moore’s execution of its final opinion, Kadimastem’s market capitalization was $22,329,905 (on a fully diluted basis according to the terms of the Merger Agreement) and its price per share was $3.161, each as calculated and converted from NIS to dollars based on a conversion rate of 3.645 NIS to 1 dollar 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 proceeds from NLS’s financing transactions from October 2024 through June 2025 (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