EX-99.1 2 ea142693ex99-1_rafael.htm PRESS RELEASE, DATED JUNE 14, 2021, REPORTING THE RESULTS OF OPERATIONS FOR THE FISCAL QUARTER ENDED APRIL 30, 2021

Exhibit 99.1

 

 

 

Rafael Holdings Reports Third Quarter Fiscal Year 2021 Results

 

NEWARK, NJ – June 14, 2021: Rafael Holdings, Inc., (NYSE: RFL), reported revenue of $1.0 million and a loss per share of $0.15 for the third quarter of its 2021 fiscal year, the three months ended April 30, 2021.

 

Q3 FY 2021 Operations and Consolidated Financial Highlights

 

●Ameet Mallik became the Company’s Chief Executive Officer on May 1, 2021 and William “Bill” Conkling is now serving as the Company’s first Chief Commercial Officer.

 

●On May 27, 2021, the Company filed a “shelf” registration statement covering sales of its Class B common stock in one or more offerings up to an aggregate initial offering price of $250 million.

 

●Q3 FY 2021 revenue of $1.0 million decreased from $1.2 million in the year-ago quarter due primarily to the sale of the Company’s building in Piscataway, NJ and reduced parking revenues resulting from the shift to work-from-home during the COVID pandemic.

 

●Q3 FY 2021 loss per share was $0.15 compared to a loss per share of $0.14 in the year ago quarter.

 

Q3 FY 2021 – Pharmaceutical Holdings - Recent Developments

 

Rafael Pharmaceuticals

 

At April 30, 2021, the Company and its controlled subsidiaries collectively owned securities representing 51% of the issued and outstanding capital stock of Rafael Pharmaceuticals and approximately 41% on a fully diluted basis. Recent developments at Rafael Pharmaceuticals include:

 

●Rafael Pharma expects to obtain a data readout from its pivotal Phase 3 clinical trial for metastatic pancreatic cancer in the fourth quarter of 2021.

 

●Rafael Pharma presented two posters at the 2021 American Society of Clinical Oncology (ASCO) Annual Meeting summarizing the respective enrollment status of ongoing trials studying devimistat in pancreatic cancer and biliary tract cancers.

 

●In March, enrollment surpassed 150 patients in Rafael Pharma’s pivotal Phase 3 clinical trial assessing the efficacy and safety of its lead compound CPI-613® (devimistat) in combination with high dose cytarabine and mitoxantrone for patients with relapsed or refractory acute myeloid leukemia (AML).

 

 

 

LipoMedix

 

At April 30, 2021, Rafael Holdings held 68% of the issued and outstanding ordinary shares of LipoMedix, a development-stage Israeli company focused on the development of an innovative, safe and effective cancer therapy based on liposome delivery. Recent developments announced by LipoMedix include:

 

●LipoMedix announced that its lead compound, Promitil® (PL-MLP), will be manufactured in the United States by ForDoz Pharma, a specialty pharmaceutical company.

 

Remarks by Howard Jonas, Chairman of Rafael Holdings

 

“We continued to build out our leadership team and operating capabilities. We are focused on becoming an integrated oncology company dedicated to the clinical development of devimistat and a robust pipeline of therapies based on cellular metabolism. I’m very pleased that Ameet Mallik is now leading our organization, as our CEO, and already has begun to accelerate execution on our strategic priorities.”

 

About Rafael Holdings, Inc.:

 

Rafael Holdings is focused on development of novel cancer therapies. The Company is a significant investor in two clinical stage oncology companies, Rafael Pharmaceuticals, Inc. and LipoMedix Pharmaceuticals Ltd. Through its wholly owned Barer Institute subsidiary, the Company is developing a pipeline of compounds focused on the regulation of cancer metabolism. For more information, visit rafaelholdings.com.

 

Contact:

 

David Polinsky

Chief Financial Officer, Rafael Holdings, Inc.

P: (212) 658-1450

E: invest@rafaelholdings.com

 

2

 

RAFAEL HOLDINGS, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands)

 

   

April 30,

2021

    

July 31,

2020

  
    (unaudited)        
ASSETS                
CURRENT ASSETS                
Cash and cash equivalents   $ 4,679     $ 6,206  
Trade accounts receivable, net of allowance for doubtful accounts of $183 and $218 at April 30, 2021 and July 31, 2020, respectively     248       267  
Due from Rafael Pharmaceuticals     480       118  
Prepaid expenses and other current assets     625       273  
Assets held for sale     —       2,968  
Total current assets     6,032       9,832  
                 
Property and equipment, net     43,591       44,433  
Equity investment – RP Finance LLC     479       192  
Due from RP Finance LLC     3,750       —  
Investments – Rafael Pharmaceuticals     79,141       70,018  
Investments – Other Pharmaceuticals     477       1,201  
Investments – Hedge Funds     9,681       7,510  
Deferred income tax assets, net     —       6  
In-process research and development and patents     1,575       1,575  
Other assets     1,482       1,580  
TOTAL ASSETS   $ 146,208     $ 136,347  
LIABILITIES AND EQUITY                
CURRENT LIABILITIES                
Trade accounts payable   $ 753     $ 921  
Accrued expenses     861       1,191  
Amount due for purchase of membership interest     3,000       3,500  
Other current liabilities     235       115  
Due to related parties     60       —  
Total current liabilities     4,909       5,727  
                 
Deferred income tax liabilities, net     9       —  
Other liabilities     33       92  
TOTAL LIABILITIES     4,951       5,819  
                 
COMMITMENTS AND CONTINGENCIES                
                 
EQUITY                
Class A common stock, $0.01 par value; 35,000,000 shares authorized, 787,163 shares issued and outstanding as of April 30, 2021 and July 31, 2020, respectively     8       8  
Class B common stock, $0.01 par value; 200,000,000 shares authorized, 15,969,962 issued and 15,982,349 outstanding as of April 30, 2021, and 15,034,598 issued and 15,028,536 outstanding as of July 31, 2020     158       149  
Additional paid-in capital     151,258       129,136  
Accumulated deficit     (28,419 )     (16,255 )
Accumulated other comprehensive income related to foreign currency translation adjustment     3,766       3,762  
Total equity attributable to Rafael Holdings, Inc.     126,771       116,800  
Noncontrolling interests     14,486       13,728  
TOTAL EQUITY     141,257       130,528  
TOTAL LIABILITIES AND EQUITY   $ 146,208     $ 136,347  

 

3

 

RAFAEL HOLDINGS, INC.

CONSOLIDATED STATEMENT OF OPERATIONS

(unaudited, in thousands, except share and per share data)

 

   Three Months Ended
April 30,		   Nine Months Ended
April 30,		 
   2021   2020   2021   2020 
REVENUE                
Rental – Third Party  $228   $360   $654   $1,076 
Rental – Related Party   523    523    1,570    1,570 
Parking   119    221    418    664 
Other – Related Party   120    120    360    360 
Total revenue   990    1,224    3,002    3,670 
                     
COSTS AND EXPENSES                    
Selling, general and administrative   3,006    2,081    8,365    6,343 
Research and development   1,262    634    3,345    1,327 
Depreciation and amortization   201    474    1,079    1,413 
Impairment – Altira   —    —    7,000    — 
Loss from operations   (3,479)   (1,965)   (16,787)   (5,413)
                     
Interest (expense) income, net   (1)   —    (2)   (31)
Net loss resulting from foreign exchange transactions   —    —    —    (5)
Gain on sale of building   —    —    749    — 
Impairment of investments - Other Pharmaceuticals   —    (295)   (724)   (295)
Unrealized (loss) gain on investments - Hedge Funds   738    (28)   4,171    492 
Loss before income taxes   (2,742)   (2,288)   (12,593)   (5,252)
Provision for income taxes   (4)   (8)   (13)   (24)
Equity in earnings of RP Finance   96    53    288    53 
Consolidated net loss   (2,650)   (2,243)   (12,318)   (5,223)
Net loss attributable to noncontrolling interests   (97)   (84)   (154)   (213)
Net loss attributable to Rafael Holdings, Inc.  $(2,553)  $(2,159)  $(12,164)  $(5,010)
                     
OTHER COMPREHENSIVE LOSS                    
Net loss  $(2,650)  $(2,243)  $(12,318)  $(5,223)
Foreign currency translation adjustment   5    (4)   4    (32)
Total comprehensive loss   (2,645)   (2,247)   (12,314)   (5,255)
Comprehensive loss attributable to noncontrolling interests   (28)   (3)   (39)   (19)
Total comprehensive loss attributable to Rafael Holdings, Inc.  $(2,617)  $(2,244)  $(12,275)  $(5,236)
                     
Loss per share                    
Basic and diluted  $(0.15)  $(0.14)  $(0.75)  $(0.32)
                     
Weighted average number of shares used in calculation of loss per share                    
Basic and diluted   16,668,624    15,813,679    16,216,969    15,747,709 

 

4

 

RAFAEL HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)

 

   Nine Months Ended
April 30,		 
   2021   2020 
Operating activities        
Net loss  $(12,318)  $(5,223)
Adjustments to reconcile net loss to net cash used in operating activities          
Depreciation and amortization   1,079    1,413 
Deferred income taxes   15    13 
Net unrealized gain on investments - Hedge Funds   (4,171)   (492)
Impairment of investments - Other Pharmaceuticals   724    295 
Impairment – Altira   7,000    — 
Equity in earnings of RP Finance   (288)   (53)
(Recovery of) provision for doubtful accounts   (183)   48 
Stock-based compensation   1,023    546 
Amortization of debt discount   —    54 
Gain on sale of building   (749)   — 
           
Change in assets and liabilities:          
Trade accounts receivable   202    141 
Prepaid expenses and other current assets   (352)   171 
Other assets   98    (72)
Accounts payable and accrued expenses   (459)   28 
Other current liabilities   120    — 
Due to related parties   60    107 
Due from Rafael Pharmaceuticals   (362)   — 
Accrued interest - Related Party   —    19 
Other liabilities   (59)   30 
Net cash used in operating activities   (8,620)   (2,975)
           
Investing activities          
Purchase of investment in Altira   (1,250)   — 
Purchases of property and equipment   (237)   (491)
Payments to fund RP Finance   (3,750)   — 
Proceeds from sale of building   3,658    — 
Proceeds related to distribution from Hedge Funds   2,000    — 
Investment in Rafael Pharmaceuticals   (9,123)   — 
Net cash used in investing activities   (8,702)   (491)
           
Financing activities          
Contribution from noncontrolling interest of consolidated entity   912    — 
Proceeds from exercise of options   43    29 
Proceeds from exercise of warrants   2,000    — 
Proceeds from issuance of shares   13,000    — 
Payments for taxes related to shares withheld for employee taxes   (185)   (125)
Net cash provided by (used in) financing activities   15,770    (96)
Effect of exchange rate changes on cash and cash equivalents   25    (32)
Net decrease in cash and cash equivalents   (1,527)   (3,594)
Cash and cash equivalents, beginning of period   6,206    12,024 
Cash and cash equivalents, end of period  $4,679   $8,430 
           
Supplemental schedule of noncash investing and financing activities          
Common shares issued for settlement of Altira liability  $6,250   $— 
Conversion of LipoMedix bridge notes  $—   $200 
Conversions of related party convertible notes payable and accrued interest  $—   $15,668 

 

# # #

 

 

5