Rafael Holdings Raises $25 Million Through Rights Offering

Rafael Holdings, a holding company, has closed a $25 million rights offering. The company has interests in clinical and early-stage pharmaceutical companies, including LipoMedix Pharmaceuticals, Barer Institute, Cornerstone Pharmaceuticals, Rafael Medical Devices, and Day Three Labs. Rafael also holds investments in Cyclo Therapeutics and a commercial building in Israel.

Title: Rafael Holdings Completes $25 Million Rights Offering

Rafael Holdings, Inc. (RFL) has successfully closed a $25 million rights offering, securing additional capital to fund its regulatory approval efforts and potential launch of Trappsol® Cyclo™, an investigational treatment for Niemann-Pick Disease Type C1 (NPC1). The offering, which expired on May 29, 2025, saw 3,130,480 shares of Class B common stock subscribed at $1.28 per share, generating $4 million from public shareholders [2].

CEO Howard Jonas and affiliates, who own approximately 32% of the company, have committed to purchase the remaining unsubscribed shares worth approximately $21 million through a backstop private placement. The net proceeds of $24.9 million will be used for regulatory approval efforts and the potential launch of Trappsol® Cyclo™, pending positive interim results from the TransportNPC™ Phase 3 clinical trial [1].

The financing structure is notable for the significant insider commitment. Following the completion of the offering and backstop, Rafael Holdings will have approximately 50.9 million Class B shares and 787,163 Class A shares outstanding. The company's pipeline includes several clinical and early-stage pharmaceutical companies, including LipoMedix Pharmaceuticals, Barer Institute, Cornerstone Pharmaceuticals, Rafael Medical Devices, and Day Three Labs. Additionally, Rafael Holdings holds investments in Cyclo Therapeutics and a commercial building in Israel [1].

The timing of the offering is strategic, as the company approaches the 48-week interim analysis of its TransportNPC™ Phase 3 clinical trial. A positive readout could position Trappsol® Cyclo™ for regulatory submission in a disease with extremely limited treatment options [1].

References

1. [RFL/rafael-holdings-inc-announces-final-results-and-closing-of-rights-y41f6b79u74z.html](https://www.stocktitan.net/news/RFL/rafael-holdings-inc-announces-final-results-and-closing-of-rights-y41f6b79u74z.html)
2. [Rafael-Holdings--Inc--Announces-Final-Results-and-Closing-of-Rights-Offering-6-4-2025](https://rafaelholdings.irpass.com/Rafael-Holdings--Inc--Announces-Final-Results-and-Closing-of-Rights-Offering-6-4-2025)