Insider filing report for Changes in Beneficial Ownership
- Schedule 13G & 13D forms are used to report a party's ownership of stock which exceeds 5% of a company's total stock issue.
- Schedule 13G is a shorter version of Schedule 13D with fewer reporting requirements.
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION,
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 1)*
| Cyclo Therapeutics, Inc. |
| (Name of Issuer) |
| Common Stock, par value $.0001 per share |
| (Title of Class of Securities) |
| 23254X201 |
| (CUSIP Number) |
| William Conkling, c/o Rafael Holdings, Inc., 520 Broad Street, Newark N.J. 07102 |
| (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) |
| July 31, 2023 |
| (Date of Event Which Requires Filing of This Statement) |
If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§ 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. ☐
| * | The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. |
The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).
| CUSIP No.______ | ||
| (1) | Names of reporting persons: Rafael Holdings, Inc. | |
| ||
| (2) | Check the appropriate box if a member of a group (see instructions) | |
| (a) ☐ | ||
| (b) ☐ | ||
| (3) | SEC use only | |
| (4) | Source of funds (see instructions) WC | |
| (5) | Check if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e) | |
| (6) | Citizenship or place of organization Delaware | |
| Number of shares beneficially owned by each reporting person with: | ||
| (7) | Sole voting power 12,157,214 | |
| (8) | Shared voting power | |
| (9) | Sole dispositive power 12,157,214 | |
| (10) | Shared dispositive power | |
| (11) | Aggregate amount beneficially owned by each reporting person 12,157,214 | |
| (12) | Check if the aggregate amount in Row (11) excludes certain shares (see instructions) | |
| (13) | Percent of class represented by amount in Row (11) 49%* | |
| (14) | Type of reporting person (see instructions) CO | |
| * | Calculated based on 24,810,641 shares of Common Stock, par value $0.0001, consisting of: (i) 15,168,397 shares of Common Stock outstanding as of May 11, 2023, as reported in the Issuer's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2023, filed on May 12, 2023; (ii) Rafael’s ownership of warrants to purchase an aggregate of 6,514,970 shares of Common Stock, which warrants are currently exercisable with respect to approximately 5,642,244 shares due to a limitation on exercise contained in the Second Tranche Warrant (as defined in Item 4 below); and (iii) the issuance to Rafael, on August 1, 2023, of 4,000,000 shares of Common Stock. |
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SCHEDULE 13D/A
This Amendment No. 1 to Schedule 13D (this “Amendment”) supplements and amends the information contained in the Schedule 13D originally filed with the Securities and Exchange Commission (the “Commission”) on May 11, 2023. This Amendment No. 1 amends Items 3, 4, 5, 6, and 7 as set forth below.
ITEM 3. SOURCE OR AMOUNT OF FUNDS OR OTHER CONSIDERATION.
The information set forth in Item 4 is hereby incorporated by reference in its entirety in this Item 3.
ITEM 4. PURPOSE OF TRANSACTION.
Item 4 is hereby amended and supplemented as follows:
On July 31, 2023, Cyclo Therapeutics, Inc. (the “Company”) held its 2023 Annual Meeting of Stockholders to consider and vote on proposals, including but not limited to (i) the approval of the exercise in full of a warrant to purchase 2,514,970 shares of Common Stock, par value $0.0001 per share (“Shares”), held by Rafael Holdings, Inc. (“Rafael”) (the “First Tranche Warrant”); (ii) the approval of the sale and issuance to Rafael of 4,000,000 Shares (the “Second Tranche Shares”); and (iii) the approval of the sale and issuance of a warrant to purchase an additional 4,000,000 Shares (the “Second Tranche Warrant”).
On August 1, 2023, Rafael purchased the Second Tranche Shares and the Second Tranche Warrant for an aggregate purchase price of $5,000,000. The Second Tranche Warrant has an exercise price of $1.25 per share and a term of seven years. The source of funds for the purchase of the Second Tranche Shares and Second Tranche Warrant is from the working capital of Rafael. Both the First Tranche Warrant and the Second Tranche Warrant are currently exercisable, subject to a contractual limitation that limits the exercise of the Second Tranche Warrant to the extent Rafael would beneficially own in excess of 49% of the number of shares of the Common Stock outstanding immediately after giving effect to such exercise.
Rafael acquired the Shares reported herein solely for investment purposes. Rafael may make additional purchases of Shares either in the open market or in private transactions depending on Rafael’s business, prospects and financial condition, the market for the Shares, general economic conditions, stock market conditions and other future developments.
Except as described in this Item 4, Rafael does not have, as of the date of this Amendment, any other plans or proposals that relate to or would result in any of the actions or events specified in clauses (a) through (i) of Item 4 of Schedule 13D. Rafael may change its plans in the future.
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ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
Item 5 is hereby amended by deleting it in its entirety and substituting the following therefor:
As of the date hereof, Rafael is the beneficial owner of 12,157,214 shares of the Company’s Common Stock consisting of: (i) 6,514,970 shares of Common Stock; and (ii) warrants to purchase an aggregate of 6,514,970 shares of Common Stock, which warrants are currently exercisable with respect to approximately 5,642,244 shares due to a limitation on exercise contained in the Second Tranche Warrant.
Rafael’s beneficial ownership represents approximately 49% of the total issued and outstanding shares of Common Stock, calculated based on 24,810,641 shares of Common Stock, consisting of: (i) 15,168,397 shares of Common Stock outstanding as of May 11, 2023, as reported in the Issuer's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2023, filed on May 12, 2023; (ii) Rafael’s ownership of warrants to purchase an aggregate of 6,514,970 shares of Common Stock, which warrants are currently exercisable with respect to approximately 5,642,244 shares due to a limitation on exercise contained in the Second Tranche Warrant; and (iii) the issuance to Rafael, on August 1, 2023, of 4,000,000 shares of Common Stock.
See Schedule 1 for the information applicable to the executive officers, directors and each person controlling Rafael, as applicable (collectively, the “Listed Persons”).
Except as described above in this Amendment, neither Rafael nor any of the Listed Persons have effected any transactions in the Shares during the past 60 days.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER.
The information provided in Item 4 above is incorporated by reference into this Item 6.
As disclosed on the Company’s Current Report on Form 8-K filed with the Commission, on June 5, 2023, Rafael entered into a Securities Purchase Agreement (the “Purchase Agreement”) with the Company to purchase the Second Tranche Shares and the Second Tranche Warrant. The obligations of Rafael and the Company to consummate the closing of the Purchase Agreement were subject to, in addition to other conditions, the Company obtaining the approval of its stockholders to the consummation of the transactions contemplated by the Purchase Agreement in accordance with Listing Rule 5635 of The Nasdaq Stock Market, Inc. Such stockholder approval was obtained on July 31, 2023.
The foregoing descriptions of the Purchase Agreement and the Second Tranche Warrant are only summaries, and do not purport to be complete and are qualified in their entirety by reference to the Purchase Agreement and Second Tranche Warrant. The Purchase Agreement and Second Tranche Warrant are attached hereto as Exhibits 10.1 and 4.1 and are incorporated by reference herein.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
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SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.
| Date | August 7, 2023 | |
|
RAFAEL HOLDINGS, INC.
| ||
| Signature: | By: /s/ William Conkling | |
|
Name/Title |
William Conkling Chief Executive Officer |
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Schedule I
The following sets forth the name, business address, and present principal occupation and citizenship of each director, executive officer and controlling person of Rafael Holdings, Inc.
Executive Officers of Rafael Holdings, Inc.
William Conkling
c/o Rafael Holdings, Inc., 520 Broad Street, Newark, NJ 07102
Principal Occupation: Chief Executive Officer
Citizenship: USA
Amount Beneficially Owned: Options to purchase 6,700 shares of Common Stock
David Polinsky
c/o Rafael Holdings, Inc., 520 Broad Street, Newark, NJ 07102
Principal Occupation: Chief Financial Officer
Citizenship: USA
Amount Beneficially Owned: 0
Howard S. Jonas
c/o Rafael Holdings, Inc., 520 Broad Street, Newark, NJ 07102
Principal Occupation: Executive Chairman and Chairman of the Board
Citizenship: USA
Amount Beneficially Owned: 0
Directors of Rafael Holdings, Inc.
Howard S. Jonas
(see above)
Stephen Greenberg
c/o Rafael Holdings, Inc., 520 Broad Street, Newark, NJ 07102
Principal Occupation: Managing Member of Pilgrim Mediation Group and Bento Box Entertainment
Citizenship: USA
Amount Beneficially Owned: 0
Rachel Jonas
c/o Rafael Holdings, Inc., 520 Broad Street, Newark, NJ 07102
Principal Occupation: Director
Citizenship: USA
Amount Beneficially Owned: 0
Mark McCamish
c/o Rafael Holdings, Inc., 520 Broad Street, Newark, NJ 07102
Principal Occupation: President and Chief Executive Officer of IconOVir Bio
Citizenship: USA
Amount Beneficially Owned: 0
Boris C. Pasche
c/o Rafael Holdings, Inc., 520 Broad Street, Newark, NJ 07102
Principal Occupation: Chief Executive Officer of TheraBionic Inc, and TheraBionic GmbH
Citizenship: USA
Amount Beneficially Owned: 0
Michael J. Weiss
c/o Rafael Holdings, Inc., 520 Broad Street, Newark, NJ 07102
Principal Occupation: Ophthalmologist at Edward S. Harkness Eye Institute
Citizenship: USA
Amount Beneficially Owned: 0
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