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Rafael Holdings Reports Third Quarter Fiscal Year 2021 Results

NEWARK, N.J., 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.

Rafael Holdings holds commercial real estate assets and interests in two clinical stage pharmaceutical companies.  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.  For more information, visit www.rafaelholdings.com (PRNewsfoto/Rafael Holdings, Inc.)

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.

RAFAEL HOLDINGS, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands)




April 30, 2021
(unaudited)


July 31, 2020

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


 

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

 

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


 

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SOURCE Rafael Holdings, Inc.

Jun 14, 2021