Cyclo Therapeutics’ Merger and Financial Arrangements with Rafael Holdings

Cyclo Therapeutics (CYTH) has issued an update.

Cyclo Therapeutics, Inc. has entered into a Merger Agreement with Rafael Holdings, Inc., which will see Cyclo Therapeutics become a wholly-owned subsidiary of Rafael after a two-step merger process. This merger, expected to close in the fourth quarter of 2024, requires approval from both companies’ stockholders and entails the issuance of Rafael Class B Common Stock in exchange for Cyclo Therapeutics shares. Additionally, Rafael will fund Cyclo Therapeutics’ clinical trial post-merger and has agreed to certain lock-up and support agreements controlling the sale and voting of the newly issued shares. The merger aims to qualify as a tax-free reorganization and is accompanied by a financing agreement where Rafael provides a convertible note to Cyclo Therapeutics to support its operations until the merger’s completion.

For an in-depth examination of CYTH stock, go to TipRanks’ Stock Analysis page.