EX-99.1 2 f8k060519ex99-1_rafaelhold.htm PRESS RELEASE, DATED JUNE 5, 2019, REPORTING THE RESULTS OF OPERATIONS FOR THE FISCAL QUARTER ENDED APRIL 30, 2019

Exhibit 99.1

 

 

 Rafael Holdings Reports Third Quarter Fiscal Year 2019 Results

 

NEWARK, NJ – June 5, 2019: Rafael Holdings, Inc., (NYSE American: RFL), reported revenue of $1.4 million and a loss per share of $0.07 for the third quarter of its 2019 fiscal year, the three months ended April 30, 2019.

 

3Q19 Highlights

 

·

Rafael Pharma announced that its lead compound, CPI-613® (devimistat), will be explored in a new combination for the treatment of T-cell lymphoma as a part of Stand Up To Cancer’s T-Cell Lymphoma Dream Team Research Grant

   
 

·

Rafael Pharma’s Phase 2 trial of CPI-613 (devimistat) for patients with relapsed or refractory Burkitt lymphoma opened in multiple sites. The US FDA has designated devimistat orphan drug status for the treatment of Burkitt lymphoma.

   
 

·

Rafael Pharma’s Phase 3 pivotal trials of CPI-613 (devimistat) devimistat for patients with metastatic pancreatic cancer and relapsed or refractory acute myeloid leukemia was ongoing in multiple sites.

   
 

·

Rafael Pharma completed its Phase 1 study of CPI-613 (devimistat) in combination with bendamustine in patients with relapsed or refractory T-cell lymphoma.

   
 

·

To meet the growing demands of its expanded clinical trial program, Rafael Pharma added a second qualified CPI-613 (devimistat) manufacturer and continued to build out its management team.

 

Remarks by Howard Jonas, Chairman and CEO of Rafael Holdings

 

“Rafael Holdings is supporting Rafael Pharma and Lipomedix as they pursue their clinical development programs including Rafael Pharma’s Phase 3 global trials of CPI-613. We are also continuing to make progress in our effort to realize the full value of our real estate holdings and particularly our 20-story commercial property and associated garage in Newark, New Jersey.”

 

About Rafael Holdings, Inc.:

 

Holdings holds commercial real estate assets and interests in two clinical stage, oncology focused pharmaceutical companies. The real estate holdings comprise properties in Newark and Piscataway, New Jersey and Jerusalem, Israel. The pharmaceutical holdings consist of equity interests in Rafael Pharmaceuticals, Inc. and a majority stake in Lipomedix Pharmaceuticals Ltd., both of which are focused on development and commercialization of drugs in the oncology space.

 

Contact:

Rafael Holdings

David Polinsky

Chief Financial Officer

P: (212) 658-1450

E: invest@rafaelholdings.com

 

 

 

 

RAFAEL HOLDINGS, INC.

CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands, except share data)

 

   April 30,   July 31, 
   2019   2018 
ASSETS        
         
CURRENT ASSETS:        
Cash and cash equivalents  $12,969   $15,803 
Trade accounts receivable, net of allowance for doubtful accounts of $86 and $82 at April 30, 2019 and July 31, 2018   672    287 
Marketable securities   —    24,701 
Due from Rafael Pharmaceuticals   160    3,300 
Prepaid expenses and other current assets   840    421 
Total current assets   14,641    44,512 
           
Property and equipment, net   49,181    50,113 
Investments – Rafael Pharmaceuticals   70,018    13,300 
Investments – Other Pharmaceuticals   2,000    2,000 
Investments – Hedge Funds   4,632    4,218 
Deferred income tax assets, net   24    — 
Patents   407    324 
In-process research and development   1,327    1,327 
Other assets   1,223    1,126 
Total assets  $143,453   $116,920 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
CURRENT LIABILITIES:          
Trade accounts payable  $755   $367 
Accrued expenses   203    500 
Other current liabilities   19    24 
Total current liabilities   977    891 
           
Due to/from related parties   44    276 
Convertible note, net of $60 discount – Related Party   14,940    — 
Accrued interest on convertible note – Related Party   418    — 
Other liabilities   210    188 
Total liabilities   16,589    1,355 
           
Commitments and contingencies          
           
STOCKHOLDERS’ EQUITY          
Class A common stock, $0.01 par value; 35,000,000 shares authorized, 787,163 shares issued and outstanding as of April 30, 2019 and July 31, 2018   8    8 
Class B common stock, $0.01 par value; 200,000,000 shares authorized, 13,139,333 and 11,762,346 shares issued and outstanding as of April 30, 2019 and July 31, 2018, respectively   131    118 
Additional paid in capital   117,383    103,636 
Accumulated deficit   (3,654)   (1,108)
Accumulated other comprehensive income   4,134    4,043 
Total Rafael Holdings, Inc. stockholders’ equity   118,002    106,697 
Noncontrolling interests   8,862    8,868 
Total equity   126,864    115,565 
           
Total liabilities and STOCKHOLDERS’ equity  $143,453   $116,920 

 

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RAFAEL HOLDINGS, INC.

CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(unaudited, in thousands, except share data)

 

   Three Months Ended
April 30,		   Nine Months Ended
April 30,		 
   2019   2018   2019   2018 
Revenues:                
Rental – Third Party  $588   $400   $1,277   $1,085 
Rental – Related Party   521    447    1,564    1,442 
Parking   268    246    688    630 
Total Revenue   1,377    1,093    3,529    3,157 
                     
Costs and expenses:                    
Selling, general and administrative   2,059    1,402    5,228    4,481 
Research and development   300    —    949    — 
Depreciation and amortization   436    422    1,296    1,276 
Loss from operations   (1,418)   (731)   (3,944)   (2,600)
                     
Interest (expense) income, net   (221)   71    647    75 
Net gain (loss) resulting from foreign exchange transactions   19    (28)   19    90 
Net loss on equity investments   —    —    —    (104)
Gain on sales of marketable securities, net   —    24    330    24 
Unrealized gain on investments – Hedge Funds   466    —    414    — 
Gain on disposal of bonus shares   —    —    —    246 
Loss before income taxes   (1,154)   (664)   (2,534)   (2,269)
Benefit from (provision for) income taxes   7    5    21    (8,438)
Net Loss   (1,147)   (659)   (2,513)   (10,707)
Net loss attributable to noncontrolling interests   (142)   (128)   (6)   (304)
Net loss attributable to Rafael Holdings, Inc.  $(1,005)  $(531)  $(2,507)  $(10,403)
                     
OTHER COMPREHENSIVE LOSS                    
Net Loss  $(1,147)  $(659)  $(2,513)  $(10,707)
Unrealized loss on marketable securities   —    (311)   —    (311)
Foreign currency translation adjustments   (54)   (85)   (52)   (10)
Total Comprehensive Loss   (1,201)   (1,055)   (2,565)   (11,028)
Comprehensive (loss) income attributable to noncontrolling interests   (18)   (29)   5    (29)
Total Comprehensive Loss attributable to Rafael Holdings, Inc.  $(1,183)  $(1,026)  $(2,570)  $(10,999)
                     
Loss Per Share attributable to Rafael Holdings Inc. common shareholders:                    
Basic and diluted  $(0.07)  $(0.04)  $(0.19)  $(0.83)
                     
Weighted average number of shared used in calculation of loss per share:                    
Basic and diluted   13,924,691    12,541,998    13,055,037    12,541,998 

 

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RAFAEL HOLDINGS, INC.

 CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS

(unaudited, in thousands, except share data)

 

   Nine Months Ended
April 30,		 
   2019   2018 
     
Operating activities        
Net loss  $(2,513)  $(10,403)
Adjustments to reconcile net loss to net cash used in operating activities:          
Depreciation and amortization   1,296    1,276 
Deferred income taxes   (24)   8,851 
Interest income on Rafael Pharmaceuticals Series D Convertible Note   (848)   — 
Net gain on sale of marketable securities   (330)   (24)
Unrealized gain on investments – Hedge Funds   (414)   — 
Provision for doubtful accounts   86    — 
Realized gain on disposal of bonus shares   —    (246)
Non-cash compensation   269    616 
Amortization of debt discount   11    — 
Interest in the equity of investments   —    (80)
Change in assets and liabilities:          
Trade accounts receivable   (471)   (142)
Other current assets and prepaid expenses   (419)   (392)
Other assets   (180)   (355)
Accounts payable and accrued expenses   91    223 
Other current liabilities   (5)   (8)
Due to/from related parties   473    (386)
Accrued interest – Related Party   418    — 
Other liabilities   22    — 
Net cash used in operating activities   (2,538)   (1,070)
           
Investing activities          
Purchases of property and equipment   (364)   (572)
Proceeds from sale and maturity of marketable securities, net   25,031    436 
Investment in Rafael Pharmaceuticals   (55,870)   — 
Net cash used in investing activities   (31,203)   (136)
           
Financing activities          
Contribution from noncontrolling interest of consolidated entity   4,587    — 
Repayment of Due from Rafael Pharmaceuticals   3,300    — 
Proceeds from exercise of options   190    — 
Proceed from sale of Class B Common shares to Related Party   7,777    — 
Proceeds from issuance of convertible note payable - Related Party   15,000    — 
Net cash provided by financing activities   30,854    — 
Effect of exchange rate changes on cash and cash equivalents   53    55 
Net decrease in cash and cash equivalents   (2,834)   (1,151)
Cash and cash equivalents at beginning of period   15,803    11,756 
Cash and cash equivalents at end of period  $12,969   $10,605 
           
Supplemental Schedule of Non-Cash Investing and Financing Activities          
Adoption effect of ASU 2016-01  $39   $— 
Beneficial conversion feature of convertible debt – Related Party  $71   $— 
Series D Convertible Note and accrued interest converted to Series D Preferred Stock  $10,848   $— 
Related Party deposit utilized to purchase Class B Common Stock  $864   $— 
Cash payments made for interest & taxes  $—   $— 

 

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