Cyclo Therapeutics Announces Closing of Strategic Investment Through a $2.1 Million Private Placement from Rafael Holdings, Inc. (NYSE:RFL)

GAINESVILLE, Fla.--(BUSINESS WIRE)--May 2, 2023--

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.”