Cyclo Therapeutics Enters into Significant Note Purchase Agreement with Rafael Holdings

On January 3, 2025, Cyclo Therapeutics, Inc. (NASDAQ: CYTH), based in Nevada, announced that it has entered into a Seventh Amended and Restated Note Purchase Agreement with Rafael Holdings, Inc., a Delaware corporation. This Agreement involves the issuance and sale of a convertible promissory note amounting to $3,000,000.00 to Rafael, which amends and supersedes previous agreements between the two companies dating back to June 2024.

The newly issued convertible promissory note matures on February 15, 2025, and carries an interest rate of 5% per annum, payable upon maturity. It provides Rafael with the option to convert the principal amount into shares of Cyclo Therapeutics’ common stock before repayment, especially in the case of a Qualified Financing or a Sale Transaction occurring. The proceeds from this agreement are intended to be utilized for working capital and general corporate purposes.

Rafael currently holds approximately 39.5% of Cyclo Therapeutics’ common stock. Furthermore, the company has engaged in an Agreement and Plan of Merger with Rafael and other parties, where Cyclo Therapeutics is set to merge with a wholly-owned subsidiary of Rafael, subject to various conditions and stockholder approvals.

The details of the Seventh Amended and Restated Note Purchase Agreement and the Convertible Promissory Note can be found in Exhibits 10.1 and 10.2 of the Form 8-K SEC filing. The Merger Agreement, dated August 21, 2024, plays a significant role alongside these developments, signaling potential further changes in the corporate structure of Cyclo Therapeutics.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Cyclo Therapeutics’s 8K filing here.

Cyclo Therapeutics Company Profile

Cyclo Therapeutics, Inc, a clinical stage biotechnology company, engages in the development of cyclodextrin-based products for the treatment of neurodegenerative diseases. The company's lead drug candidate is Trappsol Cyclo (hydroxypropyl beta cyclodextrin), an orphan drug, which is in Phase III clinical trials for the treatment of Niemann-Pick Type C disease; and in Phase IIb clinical trials for the treatment of Alzheimer's disease.