Cyclo Therapeutics Announces Early Exercise of Warrants by Board Members, Management and a Significant Shareholder Resulting in Cash Proceeds of $2.4 Million

Cyclo Therapeutics, Inc. (Nasdaq: CYTH) (“Cyclo Therapeutics” or the “Company”), a clinical stage biotechnology company dedicated to developing life-changing medicines through science and innovation for patients and families living with diseases, today announced that it had entered into a securities purchase agreement with certain accredited investors (the “Investors”) to raise $2,359,584 in a private offering (the “Offering”). The Investors owned vested warrants to purchase an aggregate of 3,323,358 shares of the Company’s common stock at an exercise price of $0.71 per share (the “Original Warrants”), which they purchased in private offerings in April and May 2023. In the Offering, the Investors exercised their Original Warrants in full, in consideration of the receipt of new warrants (“New Warrants”) with an exercise price equal to $0.95 per share, to purchase 110% of the number of shares of the Company’s common stock covered under the Original Warrants. The New Warrants will be exercisable for cash only and have a term of four years from the issuance date. The Investors include Rafael Holdings, Inc., a significant shareholder of the Company, several directors of the Company, Company management, and their affiliates.

N. Scott Fine, CEO of Cyclo Therapeutics, commented, “We continue to navigate through difficult market conditions with the best interest of our shareholders in the near and long term as a priority. We are incredibly grateful for the continued support and commitment to the future of Cyclo Therapeutics, and importantly the Niemann-Pick Disease Type C (‘NPC’) community, from Rafael Holding and other longtime shareholders as well as members of our management team and Board of Directors. The exercise of these warrants further extends our cash runway and provides us and our shareholders the confidence that we have the necessary resources to continue our mission and our work on continuing to advance our clinical trials of Trappsol Cyclo, with the goal of providing much-needed hope for a beloved community in desperate need for a therapeutic solution.”

William Conkling, Chief Executive Officer of Rafael, added, “As part of our ongoing support for development of Trappsol Cyclo, and the NPC community we have determined to exercise our warrants to support the Phase III study of Trappsol Cyclo. We believe the significant clinical progress and demonstrated operational execution by the Cyclo team has the potential to translate into significant value creation.”