Exploring Cyclo Therapeutics, Inc. (CYTH) Investor Profile: Who’s Buying and Why?

You're looking at Cyclo Therapeutics, Inc. (CYTH) and asking who's buying, but the real question in November 2025 is who owned it when the music stopped. Honestly, the investor profile for CYTH fundamentally changed on March 26, 2025, when the merger with Rafael Holdings, Inc. closed, effectively converting the stock into a right to receive 0.3525 shares of Rafael Holdings Class B Common Stock for each CYTH share. That means the focus shifted from a small-cap biotech trading around $0.72 per share near the merger date to a new entity where Rafael Holdings issued shares representing approximately 22% of the combined company to former CYTH shareholders. So, are the new institutional holders buying Rafael Holdings stock for the long-term potential of Trappsol® Cyclo™? With the Phase 3 TransportNPC™ trial's 48-week interim analysis expected in the middle of 2025, the investor base is now betting on clinical milestones, not just a micro-cap trade. Let's dig into the new ownership structure and figure out if this post-merger setup defintely creates a better risk-reward for the drug's path to market.

Who Invests in Cyclo Therapeutics, Inc. (CYTH) and Why?

You're looking at Cyclo Therapeutics, Inc. (CYTH) and trying to figure out who was buying in and why, but the picture changed dramatically in March 2025. The direct answer is that the company's investor base was strategically consolidated: it was acquired by Rafael Holdings, Inc., making CYTH a wholly owned, private subsidiary.

Before the acquisition, the investor profile was a classic biotech story: a mix of dedicated retail investors betting on a breakthrough drug, alongside one dominant strategic institutional player. This is common for clinical-stage companies with a high-stakes, single-asset pipeline.

Key Investor Types: The Pre-Merger Breakdown

The shareholder structure of Cyclo Therapeutics, Inc. (CYTH) before the March 2025 merger with Rafael Holdings, Inc. was highly skewed. It was not a stock dominated by the big mutual funds or hedge funds you see in the S&P 500. It was a micro-cap play.

• Strategic Institutional Investor: Rafael Holdings, Inc. was the anchor investor, holding approximately 39.5% of the common stock before the merger. This was a strategic, not passive, position.
• Retail Investors: These individual investors made up the bulk of the remaining float, drawn to the high-risk, high-reward nature of a rare disease (orphan drug) biotech.
• Other Institutional Holders: Traditional institutional ownership was minimal. As of March 2025, SEC filings showed only 2 institutional owners holding a total of just 67 shares, with Advisor Group Holdings, Inc. being one of the named shareholders. That's defintely a tiny institutional footprint.

The low institutional count meant the stock's price action was often volatile, driven by retail sentiment and news flow from the clinical trials, not large-scale fund rotation.

Investment Motivations: Betting on Trappsol Cyclo™

The primary motivation for nearly every investor in Cyclo Therapeutics, Inc. was the potential of its lead drug candidate, Trappsol Cyclo™ (hydroxypropyl beta cyclodextrin), for treating Niemann-Pick Disease Type C1 (NPC1). This is a fatal, rare genetic disorder with a high unmet medical need.

The investment thesis was pure growth and clinical success:

• Clinical Trial Milestone: The pivotal Phase 3 TransportNPC™ trial was fully enrolled, and the market was keenly awaiting the 48-week interim analysis results, which were projected for the middle of 2025. Positive preliminary data from an open-label sub-study had already shown stabilization or improvement in 86% of participants at 48 weeks, fueling optimism.
• High Gross Margins: The company's core operations, which included selling cyclodextrins, showed impressive efficiency, boasting gross profit margins in the range of 91.2% to 93.6% in early 2025. This hinted at massive profitability potential if the drug reached market scale.
• Strategic Necessity: For Rafael Holdings, the motivation was acquiring a lead clinical asset. For Cyclo Therapeutics, Inc., the motivation was survival. The company was quickly burning cash, evidenced by a concerning current ratio of only 0.17 in March 2025, highlighting severe liquidity pressure. The merger, which included $18 million in convertible debt from Rafael since June 2024, was essential to fund operations and reach the Phase 3 readout.

The entire investment hinged on that mid-2025 data release. It was a classic binary event investment.

Investment Strategies: From Speculation to Strategic Merger

The strategies employed by investors tracked the company's financial and clinical reality. The lack of dividends meant no one was buying for income.

Here's the quick math: A micro-cap biotech with high cash burn and a pivotal Phase 3 readout is a speculation play. Investors were either in for the long haul on the drug's promise or playing short-term momentum on news.

The ultimate strategy, of course, was the strategic acquisition. Rafael Holdings essentially converted its significant debt and equity position into 100% ownership, giving former Cyclo Therapeutics, Inc. shareholders approximately 22% of the combined Rafael Holdings Class B common stock. If you want to dive deeper into the company's journey, you should check out Cyclo Therapeutics, Inc. (CYTH): History, Ownership, Mission, How It Works & Makes Money.

The Post-Merger Reality: A New Investment Vehicle

Since the merger closed, the investment in the Trappsol Cyclo™ program is now an investment in the parent company, Rafael Holdings, Inc. The risk/reward profile is now tied to a broader portfolio of clinical-stage assets, though Trappsol Cyclo™ remains the lead clinical asset. The near-term focus remains the same: the mid-2025 interim analysis data for the NPC1 drug. That's the next catalyst you need to watch.

Institutional Ownership and Major Shareholders of Cyclo Therapeutics, Inc. (CYTH)

You're looking for the institutional profile of Cyclo Therapeutics, Inc. (CYTH), but the most important thing you need to know is this: the common stock is no longer trading. CYTH stock was suspended effective March 27, 2025, after the company completed a merger with Rafael Holdings, Inc. (RFL) on March 25, 2025.

This means your investment in CYTH, if you held shares, automatically converted into shares of Rafael Holdings, Inc. Class B Common Stock (RFL). The institutional profile of CYTH was always unique, but the new profile under Rafael Holdings is what matters now for the underlying assets, including the development of Trappsol® Cyclo™ for Niemann-Pick Disease Type C (NPC) and Alzheimer's Disease. You should now be looking at RFL's investor base.

Top Institutional Investors: The Pre-Merger CYTH Snapshot

Before the merger, Cyclo Therapeutics, Inc. was a textbook example of a micro-cap biotech stock driven almost entirely by retail investors and insiders, not large institutions. The institutional ownership was exceptionally thin, which is a key risk factor for any small-cap company.

As of March 25, 2025, just before the stock suspension, the data shows only 2 institutional owners had filed 13F forms with the SEC, holding a total of just 67 shares. This is defintely not the typical institutional backing you'd see in a mid- or large-cap company.

• Largest Reported CYTH Institutional Shareholder: Advisor Group Holdings, Inc.
• CYTH Total Shares Outstanding (Approx.): 28,768,055
• CYTH Market Capitalization (Pre-Merger): Roughly $20.730 million

Here's the quick math: with a market cap this small and institutional holdings this low, the stock's price action was highly susceptible to news flow, clinical trial results, and retail investor sentiment. One big institutional fund could have bought the entire institutional float with pocket change.

Changes in Ownership: The Merger as the Ultimate Change

The biggest change in ownership wasn't a fund manager buying or selling, but a corporate action: the merger. This move completely redefined the investor base for the Cyclo Therapeutics assets.

The merger consideration was set at 0.3525 shares of Rafael Holdings, Inc. Class B Common Stock (RFL) for every one share of CYTH. This ratio is what determined the new stake for every former CYTH shareholder.

The new parent company, Rafael Holdings, Inc. (RFL), presents a much different ownership structure. As of November 2025, RFL has a much broader institutional base, with 85 institutional owners holding a total of 4,037,503 shares. This is a significant step up in institutional credibility for the underlying Cyclo Therapeutics' drug pipeline, which you can learn more about here: Mission Statement, Vision, & Core Values of Cyclo Therapeutics, Inc. (CYTH).

The new institutional profile includes major index-tracking funds and asset managers:

Impact of Institutional Investors: Stability and Strategy

The shift from a nearly non-existent institutional base to one that includes names like Vanguard Group Inc and BlackRock, Inc. is a material change for the assets. Institutional investors, especially the large passive funds, bring stability. They typically don't trade on daily news; they hold for the long term, reducing stock volatility.

What this new structure hides, still, is the high insider and retail concentration within RFL. Institutional investors own about 7.12% of RFL, but insiders (like CEO Howard Jonas, who owns over 36%) and retail investors still account for the vast majority of the float. The institutional presence is a good sign for liquidity, but the strategic direction of the company remains heavily influenced by insiders.

For you, the investor, the key takeaway is that the extreme risk profile of a stock with virtually no institutional backing is gone. You've traded a highly volatile, retail-driven micro-cap for a stock with a larger, more diverse shareholder base, which is generally a positive for long-term holders. The risk is now tied to the combined RFL strategy, which includes the Cyclo Therapeutics pipeline, and the high insider ownership. That's the new reality for your investment.

Key Investors and Their Impact on Cyclo Therapeutics, Inc. (CYTH)

The investor profile for Cyclo Therapeutics, Inc. (CYTH) in 2025 is defintely a story of transition, culminating in a definitive acquisition. The direct takeaway is this: the company's investment landscape was dominated by a single, strategic entity, Rafael Holdings, Inc., whose influence moved the stock from public trading to an operating subsidiary structure by March 2025.

Before the merger, Cyclo Therapeutics, Inc. was a clinical-stage biotechnology firm whose fate was inextricably linked to its primary backer. The company's investor base was highly concentrated, a common trait in the micro-cap biotech space, but here, one major investor became the ultimate owner.

The Dominant Stakeholder: Rafael Holdings

The most notable investor, by a massive margin, was Rafael Holdings, Inc. This wasn't a passive investment; it was a strategic lifeline and, ultimately, a takeover. As of early March 2025, Rafael Holdings already held an approximate stake of 39.5% of Cyclo Therapeutics, Inc.'s common stock, which gave them substantial control over the company's strategic direction and financial stability. The other institutional investor of note was NOVIT Ventures, though Rafael Holdings was the clear driver.

Here's the quick math on their commitment: Rafael Holdings provided a total of $18 million in convertible debt financing to Cyclo Therapeutics, Inc. since June 11, 2024, including a final $2.5 million convertible promissory note secured in March 2025. That level of debt financing, especially for a company with a market capitalization of only $21 million around that time, shows a deep, controlling interest. It was less about portfolio diversification and more about securing a key clinical asset, Trappsol Cyclo, for Niemann-Pick Disease Type C1 (NPC1).

Investor Influence: From Backer to Owner

The influence of Rafael Holdings wasn't just on the balance sheet; it was existential. They were the primary source of working capital, a critical role for a clinical-stage biotech that is burning cash on research and development (R&D). For example, Cyclo Therapeutics, Inc. reported a net loss of approximately $6.0 million in Q2 2024, with R&D expenses at $3.5 million. This financial reliance meant Rafael Holdings had the final say on the company's path.

The key impact was forcing the merger. The merger agreement, which closed on March 26, 2025, effectively ended Cyclo Therapeutics, Inc.'s run as an independent, publicly traded entity (NASDAQ: CYTH). This move consolidated the asset, Trappsol Cyclo, under Rafael Holdings' umbrella, ensuring the continuation of the Phase 3 TransportNPC™ clinical trial, with interim analysis results expected in the middle of 2025. This is how a major investor can completely reshape a company's future.

• Primary Goal: Secure Trappsol Cyclo asset.
• Financial Leverage: Used $18 million in convertible debt.
• Ultimate Action: Full acquisition in March 2025.

Recent Moves and the Merger Mechanics

The most recent and significant investor move was the merger itself. On March 26, 2025, Rafael Holdings completed the business combination with Cyclo Therapeutics, Inc. This action translated the former Cyclo Therapeutics, Inc. shareholders into owners of the combined entity.

Former Cyclo Therapeutics, Inc. shareholders received shares of Rafael Holdings' Class B common stock, which represented approximately 22% of the combined company. The exchange ratio valued Cyclo Therapeutics, Inc. shares at approximately $0.95 per share, though the stock was trading around $0.72 just before the closing. This premium to the recent market price was the final payout to investors. The entire transaction was a clear move to simplify the corporate structure and focus all resources on the lead drug candidate. If you want to dive deeper into the financial health that led to this, you should read Breaking Down Cyclo Therapeutics, Inc. (CYTH) Financial Health: Key Insights for Investors.

The table below summarizes the key financial moves that defined the investor relationship in the 2025 fiscal year:

The action for you, the investor, is to now analyze Rafael Holdings, Inc. (NYSE: RFL), as the investment thesis for Cyclo Therapeutics, Inc. is now fully embedded there.

Market Impact and Investor Sentiment

If you're looking at Cyclo Therapeutics, Inc. (CYTH), you need to realize the story fundamentally changed in 2025: the company is now a wholly-owned subsidiary of Rafael Holdings, Inc. (RFL). This merger is the single biggest factor driving investor sentiment, and honestly, it's a mixed bag right now. The market reaction has been volatile, but the core sentiment toward the drug-Trappsol Cyclo for Niemann-Pick Type C disease-remains cautiously positive.

The stock price of the former CYTH surged by a massive 79.22% on February 7, 2025, right after the company presented positive preliminary Phase 3 data and the merger was proposed. That's a clear signal that the market believes in the clinical asset. But, the merger itself capped the upside for CYTH shareholders, valuing their shares at a fixed $0.95 each. This is why some analysts, like Maxim Group, downgraded the stock to Hold-the acquisition essentially removed the immediate, explosive biotech risk/reward profile.

The Rafael Holdings (RFL) Investor Base

The investor profile you're now tracking is really that of the parent company, Rafael Holdings, Inc., which is funding the pivotal Phase 3 trial. The institutional investor base is broad but not heavily concentrated, which is typical for a micro-cap biotech holding company. As of September 30, 2025, Rafael Holdings, Inc. had 85 institutional owners holding a total of 4,037,503 shares, representing approximately 12.97% of the outstanding stock.

The sentiment from these major institutional players is defintely mixed. While the presence of large index funds is expected, the trading activity shows some caution. Over the last quarter, institutions bought 1.8 million shares but sold 2.1 million shares, resulting in a net institutional outflow of 300,000 shares. This tells you that for every fund manager betting on the clinical success of Trappsol Cyclo, another is taking profits or rebalancing risk.

• Vanguard Group Inc.: Largest institutional holder with 1,394,726 shares.
• BlackRock, Inc.: Holds a significant position of 322,323 shares.
• Geode Capital Management, Llc: Owns 355,449 shares as of Q3 2025.

Analyst Perspectives and The Merger's Financial Anchor

Analysts are generally bullish on the drug's potential but realistic about the company's near-term financials. The consensus rating remains a 'Buy' from several analysts, though the price target of $0.95 reflects the merger's valuation cap rather than a true post-approval forecast.

The merger was a life raft, giving Cyclo Therapeutics, Inc. access to Rafael Holdings' cash and investments, which was around $90 million before the deal was finalized. This financial anchor is why the long-term outlook for the drug is better, even if the stock price is flatlining. The company can now focus on the New Drug Application (NDA) filing, which is anticipated in the second half of 2025, assuming positive interim data from the Phase 3 trial.

Here's the quick math on the 2025 fiscal year estimates from a leading analyst, which shows the financial reality of a clinical-stage biotech, even with a merger:

What this estimate hides is the potential for a massive revenue jump if the NDA filing is successful and the drug is approved in early 2026. The estimated market opportunity for Niemann-Pick Type C treatments in the U.S. alone is around $300 million annually. That's the real upside investors are hoping for.

The most important action to track now is the insider conviction: the purchase of over $16.7 million in stock by a key insider in June 2025 is a far stronger signal than any short-term institutional trading data. For a deeper dive into the financial structure post-merger, you should review Breaking Down Cyclo Therapeutics, Inc. (CYTH) Financial Health: Key Insights for Investors.