EX-99.1 2 f8k121018ex99-1_rafaelhold.htm PRESS RELEASE, DATED DECEMBER 10, 2018, REPORTING THE RESULTS OF OPERATIONS FOR THE FISCAL QUARTER ENDED OCTOBER 31, 2018

Exhibit 99.1

 

 

 

Rafael Holdings Reports First Quarter Fiscal Year 2019 Results

 

NEWARK, NJ – December 10, 2018: Rafael Holdings, Inc., (NYSE American: RFL), reported revenue of $1.1 million and a loss per share of $0.04 for the first quarter of its 2019 fiscal year, the three months ended October 31, 2018.

 

Financial and Operational Highlights

 

On August 16, 2018, Rafael Pharmaceuticals, in which subsidiaries of Rafael Holdings hold a warrant to purchase a 56% interest, announced that the U.S. Food and Drug Administration (FDA) has granted orphan drug designation to CPI-613, the Company’s lead compound, for the treatment of Peripheral T-Cell Lymphoma;

 

On November 29, 2018, Rafael Pharmaceuticals announced the initiation of a Phase 3 pivotal trial to evaluate the efficacy and safety of CPI-613 in combination with high dose cytarabine and mitoxantrone in older patients with relapsed or refractory acute myeloid leukemia (AML);

 

In October 2018, LipoMedix, in which Rafael Holdings holds a majority stake, announced that the FDA has cleared its investigational new drug application to launch a randomized Phase 2b clinical trial of Promitil, LipoMedix’s patented prodrug, for the treatment of patients with previously treated metastatic colorectal cancer;

 

Rafael Holdings continues to work to monetize its real estate holdings.

 

Remarks by Howard Jonas, Chairman and CEO of Rafael Holdings

 

“This quarter, we continued our efforts to optimize the value of both our pharmaceutical and real estate holdings.

 

“We continued to invest in Rafael Pharmaceuticals to support its operational progress. Rafael Pharmaceuticals launched a pivotal Phase 3 trial of its lead compound, CPI-613, for patients with acute myeloid leukemia and is preparing to launch a Phase 3 trial for patients with metastatic pancreatic cancer. Also, during the quarter, Rafael Pharmaceuticals announced that the FDA has granted CPI-613 orphan drug designation for the treatment of peripheral T-cell lymphoma. CPI-613 has now received orphan drug designation for five difficult-to-treat cancers with significant unmet clinical needs.

 

“LipoMedix Pharmaceuticals continued to execute on its pre-clinical and clinical trial programs of Promitil®, its flagship prodrug. This quarter, the FDA cleared LipoMedix’ IND application to launch a randomized Phase 2b clinical trial of Promitil for the treatment of patients with previously treated metastatic colorectal cancer.

 

“On the real estate side of our business, we are working to monetize our properties including our 20-story commercial property and associated garage in Newark, New Jersey.”

 

About Rafael Holdings, Inc.:

Rafael Holdings holds commercial real estate assets and interests in two clinical stage, oncology focused pharmaceutical companies. The real estate holdings include properties in Newark and Piscataway, New Jersey and Jerusalem, Israel. The pharmaceutical holdings consist of 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 AND COMBINED BALANCE SHEETS

(unaudited, in thousands, except per share data)

 

   October 31,   July 31, 
   2018   2018 
         
ASSETS        
         
CURRENT ASSETS        
Cash and cash equivalents  $10,086   $15,803 
Trade accounts receivable, net of allowance for doubtful accounts of $82 at October 31, 2018 and July 31, 2018   379    287 
Marketable securities   20,061    24,701 
Due from Rafael Pharmaceuticals   3,435    3,300 
Prepaid expenses and other current assets   484    421 
Total current assets   34,445    44,512 
           
Property and equipment, net   49,740    50,113 
Investments – Rafael Pharmaceuticals   23,300    13,300 
Investments – Other Pharmaceuticals   2,000    2,000 
Investments – Hedge Funds   4,314    4,218 
Deferred income tax assets, net   40    - 
Patents   324    324 
In-process research and development   1,327    1,327 
Other assets   1,139    1,126 
           
TOTAL ASSETS   116,629    116,920 
           
LIABILITIES AND STOCKHOLDERS’ DEFICIT          
           
CURRENT LIABILITIES          
Trade accounts payable   298    367 
Accrued expenses   431    500 
Other current liabilities   18    24 
Total current liabilities   747    891 
           
Due to related parties   582    276 
Other liabilities   174    188 
           
TOTAL LIABILITIES   1,503    1,355 
           
COMMITMENTS AND CONTINGENCIES          
           
STOCKHOLDERS’ DEFICIT          
Class A common stock, $0.01 par value; 35,000,000 shares authorized, 787,163 shares issued and outstanding as of October 31, 2018 and July 31, 2018, respectively   8    8 
Class B common stock, $0.01 par value; 200,000,000 shares authorized, 11,786,397 and 11,762,346 shares issued and outstanding as of October 31, 2018 and July 31, 2018, respectively   118    118 
Additional paid-in capital   103,784    103,636 
Accumulated deficit   (1,628)   (1,108)
Accumulated other comprehensive income   4,160    4,043 
Total stockholders’ deficit   106,442    106,697 
Noncontrolling interests   8,684    8,868 
Total equity   115,126    115,565 
           
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT  $116,629   $116,920 

 

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RAFAEL HOLDINGS, INC.

 CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(unaudited, in thousands, except per share data)

 

   Three Months Ended 
   October 31, 
   2018   2017 
         
REVENUES        
Rental – Third Party  $383   $386 
Rental – Related Party   521    505 
Parking   231    215 
Total Revenue   1,135    1,106 
           
COSTS AND EXPENSES          
Selling, general and administrative   1,453    1,736 
Research and development   373    - 
Depreciation and amortization   429    425 
           
Loss from operations   (1,120)   (1,055)
Interest income , net   101    2 
Net gains resulting from foreign exchange transactions   -    11 
Net loss on equity investments   -    (104)
Loss on sales of marketable securities   (10)   - 
Unrealized gain on marketable securities   333    - 
Gain on disposal of bonus shares   -    246 
Loss before income taxes   (696)   (900)
Benefit from (provision for) income taxes   31    (8,428)
Net Loss   (665)   (9,328)
Net loss attributable to noncontrolling interests   (184)   - 
Net loss attributable to Rafael Holdings, Inc.   (481)   (9,328)
           
OTHER COMPREHENSIVE INCOME (LOSS)          
Foreign currency translation adjustments  $78   $10 
Total Comprehensive Loss   (403)   (9,318)
Comprehensive loss attributable to noncontrolling interests   (9)   - 
Total Comprehensive Loss attributable to Rafael Holdings, Inc.  $(394)  $(9,318)
           
Loss per share:          
Basic and diluted  $(0.04)  $(0.74)
           
Weighted average number of shared used in calculation of loss per share:          
Basic and diluted   12,566,358    12,541,998 

 

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RAFAEL HOLDINGS, INC.

 CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS

(unaudited, in thousands, except per share data)

 

   Three Months Ended 
   October 31, 
   2018   2017 
   (in thousands) 
Operating activities        
Net loss  $(665)  $(9,328 
Adjustments to reconcile net (loss) income to net cash used in operating activities:          
Depreciation and amortization   429    425 
Deferred income taxes   (40)   8,838 
Realized gain on disposal of bonus shares   -    (246 
Net realized and unrealized gain on sale of marketable securities   (323)   - 
Non-cash compensation   30    606 
Interest in the equity of investments   -    104 
Change in assets and liabilities:          
Trade accounts receivable   (92)   (88 
Other current assets and prepaid expenses   (63)   6 
Other assets   (13)   (140 
Trade accounts payable and accrued expenses   (138)   79 
Other current liabilities   (6)   (25 
Due from/to related parties   171    (260 
Other liabilities   (14)   - 
Net cash used in operating activities   (724)   (29 
           
Investing activities          
Purchases of property and equipment   (26)   (223 
Proceeds from sale and maturity of marketable securities   5,820    - 
Purchase of marketable securities   (953)   - 
Investment in Rafael Pharmaceuticals   (10,000)   - 
Net cash used in investing activities   (5,159)   (223 
           
Financing activities          
Proceeds from exercise of options   118    - 
Net cash used in financing activities   118    - 
Effect of exchange rate changes on cash and cash equivalents   48    15 
Net decrease in cash and cash equivalents   (5,717)   (237 
Cash and cash equivalents at beginning of period   15,803    11,756 
Cash and cash equivalents at end of period  $10,086   $11,519 
           
Supplemental Schedule of Non-Cash Financing and Investing Activities          
Adoption effect of ASU 2016-01  $39   $- 

  

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