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Cyclo Therapeutics, Inc. (CYTH) entered a merger agreement with Rafael Holdings, Inc. (RFL) on August 22, 2024, for a deal valued at about $28.67 million.
Under the terms of the agreement, Rafael Holdings will give shares of its Class B common stock to Cyclo Therapeutics’ shareholders. The exchange will be based on a value of $0.95 per share for Cyclo Therapeutics, and the value of Rafael Holdings will be determined by its cash, marketable securities, and some other investments, minus certain debts. The share price represents a discount of 24.6% from the stock’s last closing.
Cyclo Therapeutics is a biotech company working on new treatments for brain diseases. Their main drug, Trappsol Cyclo, is in Phase 2b trials for Niemann-Pick Disease Type C and Alzheimer’s.
Rafael Holdings is a holding company investing in clinical and early-stage pharmaceutical companies, including Cyclo Therapeutics, and focuses on developing therapies for cancer and other high unmet medical needs, along with commercial real estate in the U.S. and Israel.
The merged company will concentrate on developing Trappsol Cyclo to treat Niemann-Pick Disease Type C1, a rare genetic disorder that causes harmful cholesterol buildup in the body, leading to serious symptoms and progressive damage.
Rafael Holdings first invested in Cyclo Therapeutics in March 2023 to help develop treatments for Niemann-Pick Disease Type C1. They led another funding round in the fall of 2023 and continued to support Cyclo Therapeutics with loans that could be converted into stock in 2024.
The merger is anticipated to be completed by late 2024. Cyclo Therapeutics’s current EV/Sales (TTM) ratio is 33.58, above the sector median of 3.95.
For a detailed analysis of this M&A transaction, please visit the Deal Metrics page here:
Deal Metrics for the acquisition of Cyclo Therapeutics, Inc. (CYTH) by Rafael Holdings, Inc. (RFL)
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– A spread history chart of the merger from announcement through eventual completion or failure.
– Every event as the merger progresses through the expiration of the HSR period, various regulatory approvals, shareholder votes, etc.
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– A history of deal updates.
– And a whole lot more.
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Editor’s Note: Baranjot Kaur contributed to this article