Cyclo Therapeutics Announces Closing of Strategic Investment Through a $2.1 Million Private Placement from Rafael Holdings, Inc. (NYSE:RFL)
May 02 2023 - 8:12AM
Business Wire
Cyclo Therapeutics, Inc. (Nasdaq: CYTH) (“Cyclo Therapeutics” or
the “Company”), a clinical stage biotechnology company dedicated to
developing life-changing medicines through science and innovation
for patients and families living with diseases, today announced
that it has closed a private placement of its securities with
Rafael Holdings, Inc. (NYSE:RFL) (“Rafael”) for the purchase of
2,514,970 shares of common stock and warrants to purchase an
additional 2,514,970 shares of common stock. The purchase price for
one share of common stock and a warrant to purchase one share of
common stock was $0.835. The warrants have an exercise price of
$0.71 and have a term of seven years. The gross proceeds of the
private placement were $2.1 million. In connection with the private
placement, the Company agreed to nominate William Conkling,
Rafael’s Chief Executive Officer, to the Board of Directors of
Cyclo Therapeutics.
Cyclo Therapeutics intends to use the net proceeds from the
financing for working capital and general corporate purposes,
including the support of its Trappsol® Cyclo™ development
programs.
N. Scott Fine, CEO of Cyclo Therapeutics, commented, “This
strategic investment from Rafael supports advancing our ongoing
pivotal Phase 3 study, TransportNPC™, with Trappsol® Cyclo™,
towards our goal of developing a much-needed treatment option for
patients with Niemann-Pick Disease Type C, where there remains
significant unmet need.”
William Conkling, Chief Executive Officer of Rafael commented,
“We are pleased to make this strategic investment in Cyclo
Therapeutics in support of a Phase 3 registrational clinical trial
which has the potential to benefit patients in an indication with
few effective treatment options. If successful, we believe this
investment could generate meaningful value for our
shareholders.”
The securities described above were offered by Cyclo
Therapeutics in a private placement under Section 4(a)(2) of the
Securities Act of 1933, as amended (the “Act”) and/or Regulation D
promulgated thereunder, and such securities have not been
registered under the Act or applicable state securities laws.
Accordingly, such securities may not be offered or sold in the
United States except pursuant to an effective registration
statement or an applicable exemption from the registration
requirements of the Act and such applicable state securities laws.
The securities were issued by the Company directly to Rafael
without the services of a placement agent or other
intermediary.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities in any state in which such offer, solicitation or
sale would be unlawful prior to the registration or qualification
under the securities laws of any such state or other
jurisdiction.
About Rafael Holdings, Inc.
Rafael Holdings is a holding company with interests in clinical
and early-stage pharmaceutical and other companies, including an
investment in Cornerstone Pharmaceuticals, Inc., formerly known as
Rafael Pharmaceuticals Inc., a cancer metabolism-based therapeutics
company. The Company's primary focus has been to invest in, fund,
and develop novel cancer therapies. We seek to expand our portfolio
through strategic opportunistic investments and or acquisitions
within and outside the pharmaceutical and biotech sectors.
About Cyclo Therapeutics
Cyclo Therapeutics, Inc. is a clinical-stage biotechnology
company dedicated to developing life-changing medicines through
science and innovation for patients and families living with
disease. The Company’s Trappsol® Cyclo™, an orphan drug designated
product in the United States and Europe, is the subject of four
formal clinical trials for Niemann-Pick Disease Type C, a rare and
fatal genetic disease, (www.ClinicalTrials.gov NCT02939547,
NCT02912793, NCT03893071 and NCT04860960). The Company is
conducting a Phase 2b clinical trial using Trappsol® Cyclo™
intravenously in early Alzheimer’s disease (NCT05607615) based on
encouraging data from an Expanded Access program for Alzheimer’s
disease (NCT03624842). Additional indications for the active
ingredient in Trappsol® Cyclo™ are in development. For additional
information, visit the Company’s website:
www.cyclotherapeutics.com.
Safe Harbor Statement
This press release contains “forward-looking statements” about
the company’s current expectations about future results,
performance, prospects and opportunities, including, without
limitation, statements regarding the satisfaction of closing
conditions relating to the offering and the anticipated use of
proceeds from the offering. Statements that are not historical
facts, such as “anticipates,” “believes” and “expects” or similar
expressions, are forward-looking statements. These statements are
subject to a number of risks, uncertainties and other factors that
could cause actual results in future periods to differ materially
from what is expressed in, or implied by, these statements. The
factors which may influence the company’s future performance
include the company’s ability to obtain additional capital to
expand operations as planned, success in achieving regulatory
approval for clinical protocols, enrollment of adequate numbers of
patients in clinical trials, unforeseen difficulties in showing
efficacy of the company’s biopharmaceutical products, success in
attracting additional customers and profitable contracts, and
regulatory risks associated with producing pharmaceutical grade and
food products. These and other risk factors are described from time
to time in the company’s filings with the Securities and Exchange
Commission, including, but not limited to, the company’s reports on
Forms 10-K and 10-Q. Unless required by law, the company assumes no
obligation to update or revise any forward-looking statements as a
result of new information or future events.
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JTC Team, LLC Jenene Thomas (833) 475-8247 CYTH@jtcir.com
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