EX-99.1 2 f8k120919ex99-1_rafaelhold.htm PRESS RELEASE, DATED DECEMBER 9, 2019, REPORTING THE RESULTS OF OPERATIONS FOR THE FISCAL QUARTER ENDED OCTOBER 31, 2019.

Exhibit 99.1

 

 

Rafael Holdings Reports First Quarter Fiscal Year 2020 Results

Highlights Developments in Key Holdings Including Rafael Pharmaceuticals

 

NEWARK, NJ – December 9, 2019: Rafael Holdings, Inc., (NYSE: RFL), reported revenue of $1.2 million and a loss per share of $0.10 for the fiscal quarter ended October 31, 2019.

 

Recent Operational Highlights

·Rafael Holdings became a New York Stock Exchange listed company on November 21, 2019.
·Rafael Pharmaceuticals (Rafael Pharma) a clinical-stage pharmaceutical company in which the Company holds preferred equity and a warrant to increase ownership to 56% of the fully diluted equity interests, announced several significant expansions of ongoing clinical trials:
oIts Phase 3 clinical trial (AVENGER 500) of CPI-613® (devimistat) for patients with metastatic pancreatic cancer had enrolled 100 patients at multiple sites in the United States, Europe and Israel. The trial was subsequently expanded to four sites in South Korea. The trial is expected to enroll up to 500 patients worldwide;
oExpanded its Phase 3 clinical trial (ARMADA 2000) of CPI-613® (devimistat) in older patients with relapsed or refractory acute myeloid leukemia (AML) to four sites in South Korea. The trial is expected to enroll up to 500 patients worldwide;
oExpanded its Phase 2 clinical trial of CPI-613® (devimistat) for patients with relapsed or refractory Burkitts lymphoma/leukemia to Massachusetts General Hospital. The initial trial sites were Memorial Sloan Kettering Cancer Center in New York City and City of Hope in Duarte, California;
oJosé Octávio Costa Filho, M.D., joined Rafael Pharma as Co-Chief Medical Officer. He works alongside Timothy Pardee, M.D., Ph.D., who continues as Co-Chief Medical Officer.
·On August 5th, 2019 Lipomedix Pharmaceuticals, in which the Company holds a majority interest, announced the addition of Miranda J. Toledano and Praveen Tyle, Ph.D., to its board of directors. The company also announced the formation of an executive committee of the board to enhance governance and support the company’s development. Ms. Toledano and Dr. Tyle will join Sanjeev Luther, chairman of the board, on the newly formed executive committee.

Remarks by Howard Jonas, Chairman and CEO of Rafael Holdings

“During the quarter, our key pharma holding, Rafael Pharma, continued enrolling patients in key clinical trials, including in its Phase 3 trials of CPI-613® (devimistat) for metastatic pancreatic cancer and AML, as well as its Phase 2 trial for Burkitt lymphoma.

 

“We’ve also put into place the foundation for our internal cancer metabolism drug development initiative, the Barer Institute, a wholly-owned early stage venture focused on developing a pipeline of therapeutic compounds, including compounds to regulate cancer metabolism.  The venture is pursuing collaborative research agreements with leading scientists from top academic institutions”

 

 

 

 

“After the quarter closed, we were very pleased to begin our listing on the New York Stock Exchange with the enhanced visibility that the Big Board offers.”

 

About Rafael Holdings, Inc.:

Rafael Holdings holds commercial real estate assets and interests in clinical stage pharmaceutical companies. The real estate holdings consist of properties in Newark and Piscataway, New Jersey and Jerusalem, Israel. The pharmaceutical holdings include interests in two companies focused on the development and commercialization of oncology drugs: Rafael Pharmaceuticals, Inc. and LipoMedix Pharmaceuticals Ltd. In addition, Rafael Holdings through its wholly owned subsidiary, the Barer Institute, is developing a pipeline of therapeutic compounds including compounds to regulate cancer metabolism. For more information, visit www.rafaelholdings.com.

 

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)

 

   October 31,  July 31,
   2019  2019
       
ASSETS      
       
CURRENT ASSETS      
Cash and cash equivalents  $10,771   $12,024 
Trade accounts receivable, net of allowance for doubtful accounts of $170 and $122 at October 31, 2019 and July 31, 2019, respectively   229    450 
Due from Rafael Pharmaceuticals   120    280 
Prepaid expenses and other current assets   540    507 
Total current assets   11,660    13,261 
           
Property and equipment, net   48,588    48,733 
Investments – Rafael Pharmaceuticals   70,018    70,018 
Investments – Other Pharmaceuticals   2,000    2,000 
Investments – Hedge Funds   5,088    5,125 
Deferred income tax assets, net   20    19 
In-process research and development and patents   1,575    1,575 
Other assets   1,451    1,412 
           
TOTAL ASSETS  $140,400   $142,143 
           
LIABILITIES AND EQUITY          
           
CURRENT LIABILITIES          
Trade accounts payable  $621   $795 
Accrued expenses   564    605 
Other current liabilities   15    27 
Total current liabilities   1,200    1,427 
           
Due to Related Party   28    65 
Convertible note, net of discount of $ – and $54 – Related Party   -      14,946 
Other liabilities   210    292 
Accrued interest on convertible note – Related Party   -      649 
TOTAL LIABILITIES   1,438    17,379 
           
COMMITMENTS AND CONTINGENCIES          
           
EQUITY          
Class A common stock, $0.01 par value; 50,000,000 shares authorized, 787,163 shares issued and outstanding as of October 31, 2019 and July 31, 2019   8    8 
Class B common stock, $0.01 par value; 200,000,000 shares authorized, 14,997,251 and 13,142,502 shares issued and outstanding as of October 31, 2019 and July 31, 2019, respectively   149    131 
Additional paid-in capital   128,642    112,898 
Accumulated deficit   (7,438)   (5,840)
Accumulated other comprehensive income   3,790    3,784 
Total equity attributable to Rafael Holdings, Inc.   125,151    110,981 
Noncontrolling interests   13,811    13,783 
TOTAL EQUITY   138,962    124,764 
           
TOTAL LIABILITIES AND EQUITY  $140,400   $142,143 

 

 

 

 

 

RAFAEL HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(unaudited, in thousands, except share data)

 

   Three Months Ended
October 31,
   2019  2018
Revenues:      
Rental – Third Party  $346   $383 
Rental – Related Party   520    521 
Parking   224    231 
Other – Related Party   120    -   
Total Revenues   1,210    1,135 
           
Costs and expenses:          
Selling, general and administrative   2,041    1,453 
Research and development   245    373 
Depreciation and amortization   466    429 
Loss from operations   (1,542)   (1,120)
           
Interest (expense) income, net   (64)   101 
Net loss resulting from foreign exchange transactions   (5)   -   
Loss on sales of marketable securities, net   -      (10)
Unrealized gain on sales of marketable securities   -      333 
Unrealized loss on investments – Hedge Funds   (37)   -   
Loss before income taxes   (1,648)   (696)
(Provision for) benefit from income taxes   (4)   31 
Net Loss   (1,652)   (665)
Net loss attributable to noncontrolling interests   (54)   (184)
Net loss attributable to Rafael Holdings, Inc.  $(1,598)  $(481)
           
OTHER COMPREHENSIVE LOSS          
Net Loss  $(1,652)  $(665)
Foreign currency translation adjustments   6    78 
Total Comprehensive Loss   (1,646)   (587)
Comprehensive income (loss) attributable to noncontrolling interests   2    (9)
Total Comprehensive Loss attributable to Rafael Holdings, Inc.  $(1,648)  $(596)
           
Loss per share attributable to Rafael Holdings, Inc. common shareholders:          
Basic and diluted  $(0.10)  $(0.04)
           
Weighted average number of shared used in calculation of loss per share:          
Basic and diluted   15,640,683    12,566,358 

 

 

 

 

 

 

RAFAEL HOLDINGS, INC.

 CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands, except share data)

 

   Three Months Ended
October 31,
   2019  2018
    
Operating activities      
Net loss  $(1,652)  $(665)
Adjustments to reconcile net loss to net cash used in operating activities:          
Depreciation and amortization   466    429 
Deferred income taxes   1    (40)
Net gain on sales of marketable securities   -      (323)
Unrealized loss on investments – Hedge Funds   37    -   
Provision for doubtful accounts   48    -   
Stock based compensation   94    30 
Amortization of debt discount   54    -   
Change in assets and liabilities:          
Trade accounts receivable   173    (92)
Prepaid expenses and other current assets   217    (63)
Other assets   (289)   (13)
Trade accounts payable and accrued expenses   (196)   (138)
Other current liabilities   (12)   (6)
Due to Related Party   (37)   171 
Due from Related Party   160    -   
Other liabilities   -      (14)
Net cash used in operating activities   (936)   (724)
           
Investing activities          
Purchases of property and equipment   (321)   (26)
Proceeds from sale and maturity of marketable securities, net   -      5,820 
Purchase of marketable securities   -      (953)
Investment in Rafael Pharmaceuticals   -      (10,000)
Net cash used in investing activities   (321)   (5,159)
           
Financing activities          
Proceeds from exercise of options   -      118 
Net cash provided by financing activities   -      118 
Effect of exchange rate changes on cash and cash equivalents   4    48 
Net decrease in cash and cash equivalents   (1,253)   (5,717)
Cash and cash equivalents at beginning of period   12,024    15,803 
Cash and cash equivalents at end of period  $10,771   $10,086 
           
Supplemental Schedule of Non-Cash Investing and Financing Activities          
Adoption effect of ASU 2016-01  $-     $39 
Conversion of LipoMedix Bridge Note  $82   $-   
Conversion of related party convertible notes payable and accrued interest  $15,668   $-   

 

# # #