Rafael Holdings secures shareholder nod for Cyclo Therapeutics merger

Published 25/03/2025, 11:20
Rafael Holdings secures shareholder nod for Cyclo Therapeutics merger

In a recent special meeting, shareholders of Rafael Holdings, Inc. (NYSE:RFL) overwhelmingly approved the issuance of shares related to the company’s merger with Cyclo Therapeutics. The meeting, held on March 20, 2025, saw a decisive vote with 99.92% in favor of the share issuance necessary for the acquisition. The company, currently valued at approximately $49 million in market capitalization, has seen its stock rise 20% year-to-date, according to InvestingPro data.

The merger, initially announced on August 21, 2024, and subsequently amended, involves Rafael Holdings acquiring Cyclo Therapeutics by merging it with a Rafael subsidiary. This strategic move is expected to expand Rafael’s portfolio in the pharmaceutical preparations sector, where it already has a significant presence. InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 9.26 and holds more cash than debt on its balance sheet, positioning it well for this strategic expansion.

Alongside the share issuance approval, shareholders also voted almost unanimously (99.77%) to allow the adjournment of the special meeting if necessary to solicit additional proxies for the approval of the share issuance. This shows strong shareholder support for the merger’s completion.

The vote results were clear, with 3,706,261 votes for the share issuance against just 1,571 votes opposed and 1,503 abstentions. Similarly, the adjournment proposal received 3,676,323 votes for, 32,783 against, and 229 abstentions, indicating a robust backing from the shareholders.

Rafael Holdings, based in Newark, New Jersey, is poised to enhance its position in the pharmaceutical industry with this merger. The company’s Class B common stock, which trades under the ticker RFL on the New York Stock Exchange, has shown recent momentum with a 9.39% gain in the past week. According to InvestingPro’s Fair Value analysis, the stock appears to be trading near its fair value. Subscribers can access 4 additional exclusive ProTips and comprehensive financial metrics to better evaluate this strategic development.

This article is based on a press release statement and provides factual information regarding Rafael Holdings, Inc.’s recent shareholder meeting outcomes. The details of the vote and the merger reflect the company’s current business activities and strategic direction.

In other recent news, Rafael Holdings has extended the deadline for its merger agreement with Cyclo Therapeutics. The new deadline for the SEC to declare the registration statement effective is now set for March 31, 2025, instead of the original February 15, 2025. This extension provides additional time for regulatory approval and is part of a strategic two-step merger process involving Rafael Holdings’ subsidiaries and Cyclo. Meanwhile, at its Annual Meeting of Stockholders, Rafael Holdings announced the election of all five Board of Director nominees and the ratification of CohnReznick LLP as the independent auditor. The shareholders also approved an amendment to the 2021 Equity Incentive Plan, increasing the available shares of Class B common stock by 750,000. Susan Y. Bernstein and Mark N. Stein received the highest percentage of favorable votes for their board positions. The extension of the merger deadline and the successful shareholder votes reflect the company’s ongoing strategic and governance efforts. These developments are crucial as Rafael Holdings continues to navigate the complexities of its merger and governance processes.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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