Cyclo Therapeutics, Inc., a leading biopharmaceutical company, has just announced a groundbreaking agreement with Rafael Holdings, Inc. The new convertible promissory note, valued at $3 million, marks a significant milestone for the Nevada-based company.
Under the Fourth Amended and Restated Note Purchase Agreement, the note carries an interest rate of 5% per annum and is set to mature on December 21, 2024. This strategic move provides Cyclo Therapeutics with the financial flexibility needed to drive its operations forward.
Furthermore, the company has entered into a merger agreement with a subsidiary of Rafael, aiming to advance the development of Trappsol Cyclo for the treatment of Niemann-Pick Disease Type C1 (NPC1). This merger, subject to stockholder approval and other conditions, will position Cyclo Therapeutics as a wholly-owned subsidiary of Rafael Holdings.
InvestingPro Insights: What You Need to Know
InvestingPro analysis reveals key metrics and trends surrounding Cyclo Therapeutics. While the company's market capitalization is currently at $21.81 million, the new $3 million convertible note is a vital step in bolstering its financial health.
Despite facing challenges, including a recent stock price decline, Cyclo Therapeutics shows promise with impressive gross profit margins and potential future profitability. Analysts predict a positive trajectory for the company, making it an intriguing prospect for investors.
For a comprehensive understanding of Cyclo Therapeutics' financial outlook, InvestingPro offers 8 additional tips to guide investors through the implications of this latest funding development.
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