Can a SAFE convert into ordinary shares or must it convert into preferred shares?

Most Israeli startup SAFEs and convertible loan agreements convert into the same class of shares issued in the qualifying financing round, typically Series A Preferred shares. The conversion mechanics must be specified in the agreement and the company's articles of association must permit the issuance of multiple share classes. Israeli Companies Law 1999 Section 20 allows companies to create share classes with different rights, which makes preferred conversion fully legal.