Rafael Holdings has successfully completed a $25 million rights offering designed to fund the potential regulatory approval and commercial launch of Trappsol Cyclo, its lead clinical candidate for treating Niemann-Pick Disease Type C1 (NPC1). The funding positions the company for critical upcoming milestones in its Phase 3 clinical program for this rare genetic disorder.
Rights Offering Results and Executive Commitment
The rights offering, which concluded on May 29, 2025, resulted in subscriptions for 3,130,480 shares of Class B common stock at $1.28 per share, generating gross proceeds of approximately $4.0 million from public stockholders. CEO Howard Jonas and his affiliates, who held approximately 32% of the company's outstanding common stock prior to the offering, fulfilled their backstop commitment by purchasing the remaining unsubscribed shares for $20.99 million through a private placement.
"I want to thank all of the stockholders that participated in the Rights Offering," Jonas commented. "The proceeds from the Rights Offering will provide the Company additional capital for the regulatory approval efforts and potential launch of Trappsol Cyclo in the event of a positive interim result from the 48-week interim analysis of the TransportNPC Phase 3 clinical trial in Niemann-Pick Disease Type C1."
Strategic Focus on Rare Disease Treatment
The funding is specifically allocated to support Trappsol Cyclo's development pathway for NPC1, described as "a rare, fatal, and progressive genetic disorder." The company is awaiting results from the 48-week interim analysis of its TransportNPC Phase 3 clinical trial, which will determine the next steps for regulatory approval efforts and potential market launch.
Rafael Holdings operates through its wholly-owned subsidiary, Cyclo Therapeutics, LLC, a clinical-stage biotechnology company dedicated to developing Trappsol Cyclo. The treatment represents the company's primary clinical asset and strategic focus within the rare disease space.
Financial Structure and Market Position
Following completion of both the rights offering and backstop private placement, Rafael Holdings expects to have approximately 50,879,164 shares of Class B common stock and 787,163 shares of Class A common stock outstanding. The company anticipates net proceeds of approximately $24.9 million after deducting expenses related to the offering.
The rights offering was structured to provide existing stockholders and public warrant holders the opportunity to purchase 0.526 shares of Class B common stock for each subscription right held, with fractional shares rounded down to the nearest whole number. The subscription rights were non-transferable and could only be exercised during the designated subscription period from May 13 through May 29, 2025.
Broader Portfolio Context
Beyond its lead NPC1 program, Rafael Holdings maintains a diversified portfolio of clinical and early-stage pharmaceutical investments. The company holds majority equity interests in LipoMedix Pharmaceuticals Ltd., Cornerstone Pharmaceuticals Inc. (formerly Rafael Pharmaceuticals Inc.), Rafael Medical Devices LLC, and Day Three Labs Inc., spanning clinical-stage pharmaceuticals, cancer metabolism therapeutics, orthopedic medical devices, and cannabis manufacturing technologies.
