Rafael Holdings Completes Merger with Cyclo Therapeutics
Deal News | Mar 26, 2025 | Globenewswire
Rafael Holdings, Inc., a biotechnology firm, has successfully completed its merger with Cyclo Therapeutics, Inc. following the approval by shareholders of both companies. Rafael Holdings issued shares of its Class B common stock to the shareholders of Cyclo Therapeutics representing approximately 22% of the combined entity. This move marks a significant step up in Rafael Holdings' strategic goal to develop clinical-stage assets in areas of high unmet medical need. In particular, Rafael identifies Trappsol® Cyclo, a clinical asset for treating Niemann-Pick Disease Type C1 (NPC1), as a pivotal component in its portfolio. The merger aims to enhance the development and delivery of effective therapies to patients suffering from NPC. Legal and financial advisory roles were undertaken by Schwell Wimpfheimer & Associates, Fox Rothschild LLP, and Cassel Salpeter & Co. Through this merger, Cyclo Therapeutics becomes a wholly-owned subsidiary of Rafael Holdings, positioning the company as a leader in orphan drug development.
Sectors
- Biotechnology
- Pharmaceuticals
- Healthcare
Geography
- United States – Both Rafael Holdings and Cyclo Therapeutics are based in the United States, with operations and headquarters in Newark, New Jersey, and Gainesville, Florida, respectively.
Industry
- Biotechnology – The article discusses the merger between two biotechnology companies, Rafael Holdings and Cyclo Therapeutics. Both companies are involved in the development of clinical-stage pharmaceutical products, particularly focused on rare diseases.
- Pharmaceuticals – Rafael Holdings and Cyclo Therapeutics operate in the pharmaceutical sector, with a focus on developing pharmaceutical compounds and therapies for genetic and rare diseases.
- Healthcare – Both the merger and ongoing clinical trials for Niemann-Pick Disease Type C1 highlight the broader healthcare focus of improving patient outcomes through innovative medical treatments.
Financials
- 22% – The percentage of Class B common stock issued by Rafael Holdings to Cyclo Therapeutics shareholders in the newly formed company.
- 0.3525 – The exchange ratio used in the merger agreement for the issuance of Rafael Holdings' shares to Cyclo Therapeutics' shareholders.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Rafael Holdings, Inc. | Target Company | Company | A biotechnology company with diverse interests in clinical and early-stage pharmaceutical developments. |
| Cyclo Therapeutics, Inc. | Selling Company | Company | A clinical-stage biotechnology firm focused on developing treatments for Niemann-Pick Disease Type C1. |
| Schwell Wimpfheimer & Associates | Legal Advisor to Rafael Holdings | Company | Provided legal counsel to Rafael Holdings during the merger. |
| Fox Rothschild LLP | Legal Advisor to Cyclo Therapeutics | Company | Served as legal advisors to Cyclo Therapeutics in the merger. |
| Cassel Salpeter & Co. | Financial Advisor | Company | Acted as financial advisor to Cyclo Therapeutics' Board of Directors. |