Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 57

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 3
Chunk 57
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We are organized under the
laws of Switzerland. However, there can be no assurance that Swiss law will not change in the future or that it will serve to protect
investors in a similar fashion afforded under corporate law principles in the United States, which could adversely affect the rights of
investors.

Our status as a Swiss corporation may limit
our flexibility with respect to certain aspects of capital management and may cause us to be unable to make distributions without subjecting
our shareholders to Swiss withholding tax.

The amended Swiss corporate
law, effective January 1, 2023, allows our shareholders to implement a so called capital band ( Kapitalband) in the articles of
association which authorizes the board of directors to increase and/or decrease the share capital within a certain bandwidth without additional
shareholder approval. This authorization is limited to 50% of the existing registered share capital and the authorization requires renewal
by the shareholders every five years or at its earlier expiration. Additionally, subject to specified exceptions, Swiss law grants pre-emptive
subscription rights to existing shareholders to subscribe to any new issuance of shares. Swiss law also does not provide as much flexibility
in the various terms that can attach to different classes of shares as the laws of some other jurisdictions. Swiss law also reserves for
approval by shareholders certain corporate actions over which a board of directors would have authority in some other jurisdictions. For
example, dividends must be approved by shareholders. These Swiss law requirements relating to our capital management may limit our flexibility,
and situations may arise where greater flexibility would have provided substantial benefits to our shareholders.

Under Swiss law, a Swiss corporation may pay dividends only if the
corporation has sufficient distributable profits from previous fiscal years, or if the corporation has distributable reserves, each as
evidenced by its audited statutory balance sheet. Furthermore, a Swiss corporation may pay interim dividends (“ Zwischendividende”)
if the corporation has sufficient distributable profits during the current fiscal year. The remaining provisions applicable to the dividends
are also applicable to the interim dividends. Freely distributable reserves are generally booked either as “free reserves”
or as “capital contributions” (contributions received from shareholders) in the “reserve from capital contributions.”
Distributions may be made out of issued share capital - the aggregate nominal value of a company’s issued shares - only by way of
a capital reduction. As of December 31, 2024, we had CHF 56,373,233 (approximately $60,408,