Rafael Holdings and Cyclo Therapeutics announce merger

Rafael Holdings has entered into a definitive merger agreement with Cyclo Therapeutics to accelerate the development of Trappsol Cyclo, a treatment for Niemann-Pick disease type C1. As part of the merger, Rafael will issue shares of its Class B common stock to Cyclo’s shareholders, valuing Cyclo at $0.95 per share. The valuation of Rafael will be based on its cash value, marketable securities, and certain other investments, minus some current liabilities. This calculation also includes the funding provided to Cyclo’s operations through convertible notes until the merger is finalized.

After the merger, Rafael commits to financing the TransportNPC clinical trial until the 48-week interim analysis. Both companies’ boards of directors have approved the deal, and the merger is expected to be concluded later this year. Rafael started its strategic investment in Cyclo in March 2023 and continued to support Cyclo into 2024 through convertible debt financings.

Bill Conkling, Rafael Holdings president and CEO, remarked, “The proposed merger with Cyclo Therapeutics is a major step forward in our strategy to invest in, develop, and commercialize clinical stage assets in areas of high unmet medical need. Cyclo Therapeutics continues to make substantial progress in advancing its lead asset, Trappsol Cyclo, announcing the completion of enrollment in its pivotal TransportNPC Phase III clinical study for the treatment of Niemann-Pick disease type C1 at the end of May 2024. We are impressed with the execution by the Cyclo Therapeutics team in fully enrolling a comprehensive clinical trial in NPC and we eagerly await the 48-week interim analysis in the middle of 2025.”

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