As
filed with the Securities and Exchange Commission on January 20, 2021
Registration
No. 333-
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
S-3
REGISTRATION
STATEMENT
UNDER
THE SECURITIES ACT OF 1933
RAFAEL
HOLDINGS, INC.
(Exact
name of registrant as specified in its charter)
Delaware
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26-3199071
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(State or other jurisdiction
of
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(I.R.S. Employer
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Incorporation or
organization)
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Identification Number)
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520
Broad Street
Newark,
NJ 07102
(212)
658-1450
(Address,
including zip code; telephone number, including area code of registrant’s principal executive offices)
Howard
Jonas
Chief
Executive Officer
Rafael
Holdings, Inc.
520
Broad Street
Newark,
NJ 07102
(212)
658-1450
(Name,
address, including zip code; telephone number, including area code of agent for service)
Copies
to:
Dov
T. Schwell, Esq.
Schwell
Wimpfheimer & Associates LLP
37
W. 39th Street, Suite 505
New
York, NY 10018
(646) 328-0795
Approximate
date of commencement of proposed sale to the public: From time to time after the effective date of this registration statement
as determined by the registrant.
If
the only securities to be offered on this Form are being offered pursuant to dividend or reinvestment plans, please check the
following box. ☐
If
any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under
the Securities Act of 1933, other than securities offered only in connection with dividend or reinvestment plans, check the following
box. ☒
If
this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please
check the following box and list the Securities Act registration statement number of the earlier effective registration statement
for the same offering. ☐
If
this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list
the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐
If
this Form is a registration statement pursuant to General Instruction I.D. or a post-effective amendment thereto that shall become
effective upon filing with the Commission pursuant to Rule 462(e) under the Securities Act, check the following box. ☐
If
this Form is a post-effective amendment to a registration statement filed pursuant to General Instruction I.D. filed to register
additional securities or additional classes of securities pursuant to Rule 413(b) under the Securities Act, check the following
box. ☐
Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller
reporting company” in Rule 12b-2 of the Exchange Act. (check one):
Large
accelerated filer ☐
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Accelerated
Filer ☐
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Non-accelerated
filer ☒
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Smaller
reporting company ☒
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Emerging
growth company ☒
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If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period
for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of Securities
Act. ☐
CALCULATION
OF REGISTRATION FEE
Title of Securities to be Registered (1)
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Proposed
Maximum
Aggregate
Offering
Price (2)
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Amount of
Registration
Fee (3)
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Class B Common Stock, par value $.01 per share
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$
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6,950,000
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$
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758.25
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(1)
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Includes
an indeterminate number of securities that may be issued in connection with Rafael Holdings,
Inc.’s obligations pursuant to the Membership Interest Purchase Agreement, dated
December 7, 2020 by and between the Company and Robert Rodriguez.
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(2)
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Not
specified as to each class of securities to be registered hereunder pursuant to General
Instruction II(D) to Form S-3 under the Securities Act of 1933, as amended (the “Securities
Act”). The proposed maximum aggregate offering price per class of securities will
be determined from time to time by the registrant in connection with the issuance of
the securities registered hereunder. The aggregate public offering price of the securities
registered hereby will not exceed $6,950,000.
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(3)
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Calculated
pursuant to Rule 457(o) under the Securities Act.
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The
registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until
the registrant shall file a further amendment which specifically states that this registration statement shall thereafter
become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the registration
statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a),
may determine.
The
information in this prospectus is not complete and may be changed. We may not sell these securities until the registration statement
filed with the Securities and Exchange Commission is declared effective. This prospectus is not an offer to sell these securities
and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.
SUBJECT
TO COMPLETION, DATED January 20, 2021
PROSPECTUS
Rafael
Holdings, Inc.
$6,950,000
Class
B Common Stock
This
prospectus relates to the issuance of our Class B common stock having an aggregate offering price of up to $6,950,000 from time
to time pursuant to the Membership Interest Purchase Agreement by and between us and Robert Rodriguez, dated December 7, 2020,
whereby we purchased the economic rights to Mr. Rodriguez’s thirty-three and one-third percent (33.33%) interest in Altira
Capital & Consulting, LLC (the “Purchase Agreement”). Under the Purchase Agreement, we may pay up to $6,950,000
of the purchase price in shares of Class B common stock.
This
prospectus provides a general description of the securities we may issue. The prospectus supplement and any related free writing
prospectus may also add, update or change information contained in this prospectus. You should carefully read this prospectus,
the applicable prospectus supplement and any related free writing prospectus, as well as any documents incorporated by reference
herein or therein before you invest in any securities.
Issuances
of shares of our Class B common stock may be made from time to time in accordance with the Purchase Agreement, in payment of a
portion of the purchase price thereunder, with each share of Class B common stock being deemed to have a value under the Purchase
Agreement equal to the average of the last reported sale prices of our Class B common stock on the New York Stock Exchange (“NYSE”)
for the ten (10) NYSE trading days ending with the trading day immediately prior to the date of payment.
Our
Class B common stock is listed on the NYSE under the symbol “RFL”. On January 19, 2021, the last reported sale
price for our Class B common stock was $25.03 per share. The applicable prospectus supplement will contain information, where
applicable, as to any other listing on any securities market or other exchange of the securities, if any, covered by the
prospectus supplement.
Investing
in our securities involves risks. See “Risk Factors” beginning on page 4.
Neither
the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or
determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
The
date of this prospectus is on January 20, 2021.
TABLE
OF CONTENTS
ABOUT
THIS PROSPECTUS
This
prospectus is a part of a registration statement that we filed with the Securities and Exchange Commission, or SEC, utilizing
a “shelf” registration process. Under this shelf registration process, we may issue shares of Class B common stock
described in this prospectus in payment of a portion of the purchase under the Purchase Agreement up to a total dollar amount
of $6,950,000. You should read this prospectus together with the information incorporated herein by reference as described under
the heading “Where You Can Find Additional Information.”
You
should rely only on the information that we have provided or incorporated by reference in this prospectus. No person is authorized
to give any information or represent anything not contained in this prospectus. We have not authorized any dealer, salesman or
other person to give any information or to make any representation other than those contained or incorporated by reference in
this prospectus. You must not rely upon any information or representation not contained or incorporated by reference in this prospectus.
We take no responsibility for, and can provide no assurance as to the reliability of, any other information that others may give
you. We are only offering the securities in places where sales of those securities are permitted.
This
prospectus does not constitute an offer to sell or the solicitation of an offer to buy any securities other than the registered
securities to which they relate, nor do this prospectus constitute an offer to sell or the solicitation of an offer to buy securities
in any jurisdiction to any person to whom it is unlawful to make such offer or solicitation in such jurisdiction. You should not
assume that the information contained in this prospectus is accurate on any date subsequent to the date set forth on the front
of the document or that any information we have incorporated by reference therein is correct on any date subsequent to the date
of the document incorporated by reference, even though this prospectus is delivered or the applicable securities are sold on a
later date.
As
used in this prospectus, “Rafael Holdings, Inc.,” “Rafael,” “the Company,” “we,”
“our,” “ours,” and “us” refer to Rafael Holdings, Inc. and its consolidated subsidiaries.
SUMMARY
This
summary highlights selected information from this prospectus and the documents incorporated herein by reference and does not contain
all of the information that you need to consider in making your investment decision. You should carefully read the entire prospectus,
including the risks of investing in our securities discussed under “Risk Factors” beginning on page 4 of this
prospectus, the information incorporated herein by reference, including our financial statements, and the exhibits to the registration
statement of which this prospectus is a part. All references in this prospectus to “we,” “us,” “our,”
“Rafael,” “Rafael Holdings, Inc.”, the “Company” and similar designations refer to Rafael
Holdings, Inc. and its consolidated subsidiaries, unless otherwise indicated or as the context otherwise requires.
Our
Business
Rafael
Holdings, Inc. (“Rafael Holdings” or the “Company”), a Delaware corporation, owns interests in pre-clinical
and clinical stage pharmaceutical companies and commercial real estate assets. The assets are operated as two separate lines of
business.
The
pharmaceutical holdings include preferred and common equity interests and a warrant to purchase additional equity interests in
Rafael Pharmaceuticals, Inc., or Rafael Pharmaceuticals, which is a clinical stage, oncology-focused pharmaceutical company committed
to the development and commercialization of therapies that exploit the metabolic differences between normal cells and cancer cells;
and, a majority equity interest in LipoMedix Pharmaceuticals Ltd., or LipoMedix, a clinical stage oncological pharmaceutical company
based in Israel. In addition, in 2019, we established the Barer Institute (“Barer”), a wholly-owned early stage venture
focused on developing a pipeline of therapeutic compounds, including compounds to regulate cancer metabolism. The venture is pursuing
collaborative research agreements with leading scientists from top academic institutions to develop other early stage ventures
such as the launching of a joint venture which has entered into an agreement with Princeton University’s Office
of Technology Licensing for technology for an exclusive worldwide license to its SHMT (serine hydroxymethyltransferase) inhibitor
program. In addition, we have recently initiated efforts to develop other early stage pharmaceutical ventures.
The
commercial real estate holdings consist of a building at 520 Broad Street in Newark, New Jersey that serves as headquarters for
the Company and certain other related entities and hosts other tenants and an associated 800-car public garage, and a portion
of a building in Israel. On August 28, 2020 we sold a 3-story, 65,253 square foot office building located at 225 Old New Brunswick
Road in Piscataway, New Jersey for $3,875,000.
Rafael
Pharmaceuticals recently announced two milestones in its clinical trial phase programs including completing target enrollment
of 500 patients of its pivotal phase 3 pancreatic cancer program, ahead of schedule in August 2020, and in October 2020 crossing
enrollment of its hundredth patient in its pivotal phase 3 study for relapsed or refractory Acute Myeloid Leukemia (“AML”).
Additionally, the U.S. Food and Drug Administration (“FDA”) has granted Fast Track designation for Rafael Pharmaceuticals’
lead compound, CPI-613® (devimistat), for the treatment of both metastatic pancreatic cancer and AML.
Risks
and Uncertainties - COVID-19
In
December 2019, a new coronavirus, now known as COVID-19, which has proved to be highly contagious, emerged in Wuhan, China and
has since spread around the globe. The Company actively monitors the outbreak and its potential impact on its operations and those
of the Company’s holdings. Although the Company’s operations are mainly in the United States, the Company has assets
outside of the United States, and some of the Company’s pharmaceutical holdings conduct operations, manufacturing and clinical
trial activities in Europe and Asia.
The
impacts on the operations and specifically the ongoing clinical trials of our pharmaceutical holdings have been actively managed
by respective pharmaceutical management teams who have worked closely with the appropriate regulatory agencies to continue clinical
trial activities with as minimal impact as possible including receiving waivers for certain clinical trial activities from the
respective regulatory agencies to continue the studies.
The
Company had one tenant that did not pay rent in August 2020 due to the New Jersey state gym closures; however, the tenant subsequently
resumed rent payments for September and onward. There is a general degree of uncertainty in the national commercial real estate
market based on the COVID-19 pandemic and as a result there is a potential impact to the value of the Company’s real estate
portfolio as well as efforts to monetize those assets.
The
Company has implemented a number of measures to protect the health and safety of our workforce including a mandatory work-from-home
policy for our workforce who can perform their jobs from home as well as restrictions on business travel and workplace and in-person
meetings.
Due
to both known and unknown risks, including quarantines, closures and other restrictions resulting from the outbreak, operations
and those of the Company’s holdings may be adversely impacted. Additionally, as there is an evolving nature to the COVID-19
situation, we cannot reasonably assess or predict at this time the full extent of the negative impact that the COVID-19 pandemic
may have on our business, financial condition, results of operations and cash flows. The impact will depend on future developments
such as the ultimate duration and the severity of the spread of the COVID-19 pandemic in the U.S. and globally, the effectiveness
of federal, state, local and foreign government actions on mitigation and spread of COVID-19, the pandemic’s impact on the
U.S. and global economies, changes in our customers’ behavior emanating from the pandemic and how quickly we can resume
our normal operations, among others. For all these reasons, the Company may incur expenses or delays relating to such events outside
of the Company’s control, which could have a material adverse impact on the Company’s business.
Recent
Financing
On
December 7, 2020, we entered into a Securities Purchase Agreement (the “SPA”) for the sale of 567,437 shares of our
Class B common stock at a price per share of $22.91 (which was the closing price for the Class B common stock on the New York
Stock Exchange on December 4, 2020 the trading day immediately preceding the date of the SPA) for an aggregate purchase price
of $13 million. In connection with the SPA, each purchaser was granted warrants to purchase twenty percent (20%) of the shares
of Class B common stock purchased by such purchaser. The warrants have an exercise price of $22.91 per share and expire on June
6, 2022. We issued warrants to purchase an aggregate of 113,487 shares of Class B common stock. We expect to use a majority of
the proceeds received pursuant to the SPA to exercise an additional portion of the warrant held by our subsidiary to purchase
equity securities of Rafael Pharmaceuticals, in order to maintain our relative position in the shares outstanding as well as the
fully-diluted equity of Rafael Pharmaceuticals in light of issuances of Rafael Pharmaceuticals equity securities to third-party
stockholders, including due to warrant exercises by those stockholders. We intend to use additional proceeds to fund the operations
of our drug development programs including through the Barer Institute, and for general corporate purposes. Under the SPA, two
entities, on whose Boards of Directors Howard Jonas, our Chief Executive Officer and Chairman of the Board serves, each purchased
218,245 shares of Class B common stock for consideration of $10 million.
Securities
We May Issue
We
may issue shares of our Class B common stock from time to time under this prospectus in payment of a portion of the purchase price
under the Purchase Agreement up to a total dollar amount of $6,950,000, with each share of Class B common stock being deemed to
have a value under the Purchase Agreement equal to the average of the last reported sale prices of our Class B common stock on
the NYSE for the ten (10) NYSE trading days ending with the trading day immediately prior to the date of payment. This prospectus
provides a general description of the securities we may issue.
Class
B Common Stock
We
may issue shares of our Class B common stock, par value $0.01 per share. Holders of our Class B common stock are entitled to receive
dividends as our board of directors may declare from time to time out of legally available funds, subject to the preferential
rights of the holders of any shares of our preferred stock that are outstanding or that we may issue in the future. Currently,
we do not have any issued and outstanding preferred stock. Each holder of our Class B common stock is entitled to one tenth of
one vote per share. In this prospectus, we provide a general description of, among other things, our dividend policy and the rights
and restrictions that apply to holders of our Class B common stock. Our Class B common stock is described in greater detail in
this prospectus under “Description of Capital Stock — Class B Common Stock.”
RISK
FACTORS
Investment
in our securities involves risks. Prior to making a decision about investing in our securities, you should consider carefully
all of the information included and incorporated by reference or deemed to be incorporated by reference in this prospectus or
the applicable prospectus supplement, including the risk factors incorporated by reference herein from our Form 10-K for the fiscal
year ended July 31, 2020, as updated by annual, quarterly and other reports and documents we file with the Securities and Exchange
Commission (the “SEC”) since July 31, 2020, including after the date of this prospectus and that are incorporated
by reference herein or in the applicable prospectus supplement. Each of these risk factors could have a material adverse effect
on our business, results of operations, financial position or cash flows, which may result in the loss of all or part of your
investment.
FORWARD-LOOKING
STATEMENTS
This
prospectus and the documents incorporated herein by reference contain forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are based on our management’s current beliefs, expectations and
assumptions about future events, conditions and results and on information currently available to us. Discussions containing these
forward-looking statements may be found, among other places, in the Sections entitled “Business,” “Risk Factors”
and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” incorporated by
reference from our most recent Annual Report on Form 10-K and in our Quarterly Reports on Form 10-Q, as well as any amendments
thereto, filed with the SEC.
All
statements, other than statements of historical fact, included or incorporated herein regarding our strategy, future operations,
financial position, future revenues, projected costs, plans, prospects and objectives are forward-looking statements. Words such
as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,”
“estimate,” “think,” “may,” “could,” “will,” “would,”
“should,” “continue,” “potential,” “likely,” “opportunity” and similar
expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of
identifying forward-looking statements. Additionally, statements concerning future matters such as our expectations of business
and market conditions, development and commercialization of new products, enhancements of existing products or technologies, and
other statements regarding matters that are not historical are forward-looking statements. Such statements are based on currently
available operating, financial and competitive information and are subject to various risks, uncertainties and assumptions that
could cause actual results to differ materially from those anticipated or implied in our forward-looking statements due to a number
of factors including, but not limited to, those set forth above under the section entitled “Risk Factors” in this
prospectus and any accompanying prospectus supplement. Given these risks, uncertainties and other factors, many of which are beyond
our control, you should not place undue reliance on these forward-looking statements.
Except
as required by law, we assume no obligation to update these forward-looking statements publicly, or to revise any forward-looking
statements to reflect events or developments occurring after the date of this prospectus, even if new information becomes available
in the future.
USE
OF PROCEEDS
Any
shares of Class B common stock issued pursuant to this Prospectus will be issued to satisfy a portion of our obligations under
the Purchase Agreement. We will not receive any cash proceeds from such issuances.
DESCRIPTION
OF SECURITIES WE MAY OFFER
We
may issue shares of our Class B common stock from time to time under this prospectus in payment of a portion of the purchase price
under the Purchase Agreement up to a total dollar amount of $6,950,000, with each share of Class B common stock being deemed to
have a value under the Purchase Agreement equal to the average of the last reported sale prices of our Class B common stock on
the NYSE for the ten (10) NYSE trading days ending with the trading day immediately prior to the date of payment. This prospectus
provides a general description of the securities we may issue.
DESCRIPTION
OF OUR CAPITAL STOCK
Our
authorized capital stock consists of (i) 35 million shares of Class A common stock, (ii) 200 million shares of Class B common
stock, and (iii) 10 million shares of Preferred Stock.
Class
A Common Stock
Holders
of shares of our Class A common stock are entitled to three votes for each share on all matters to be voted on by the stockholders.
Holders of our Class A common stock are entitled to share ratably in dividends, if any, as may be declared from time to time by
the Board of Directors in its discretion from funds legally available therefor. Each share of our Class A common stock may be
converted, at any time and at the option of the holder, and automatically converts upon transfers to unaffiliated parties, into
one fully paid and non-assessable share of our Class B common stock.
As
of January 19, 2021, there were 787,163 of our shares of Class A common stock outstanding.
Class
B Common Stock
Holders
of shares of our Class B common stock are entitled to one tenth of one vote for each share on all matters to be voted on by the
stockholders. Holders of our Class B common stock are entitled to share ratably in dividends, if any, as may be declared from
time to time by the Board of Directors in its discretion from funds legally available therefor.
As
of January 19, 2021, there were 15,635,882 shares of Class B common stock outstanding.
Preferred
Stock
The
Board of Directors has the authority to fix the price, rights, preferences, privileges and restrictions, including voting rights,
of those shares without any further vote or action by the stockholders.
As
of January 19, 2021, there were no shares of our preferred stock outstanding.
Anti-Takeover
Effects of Our Charter and By-Laws
Some
provisions of Delaware law and our Certificate of Incorporation and By-Laws could make the following more difficult:
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acquisition of us by means of a tender offer;
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acquisition of us by means of a proxy contest
or otherwise; or
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removal of our incumbent officers and directors.
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These
provisions, summarized below, are expected to discourage coercive takeover practices and inadequate takeover bids. These provisions
also are designed to encourage persons seeking to acquire control of us to first negotiate with our Board of Directors. We believe
that the benefits of increased protection give us the potential ability to negotiate with the proponent of an unfriendly or unsolicited
proposal to acquire or restructure us and outweigh the disadvantages of discouraging those proposals because negotiation of them
could result in an improvement of their terms.
Certificate
of Incorporation; By-Laws
Our
Certificate of Incorporation and By-Laws contain provisions that could make more difficult the acquisition of us by means of a
tender offer, a proxy contest or otherwise. These provisions are summarized below.
Undesignated
Preferred Stock. The authorization of our undesignated preferred stock makes it possible for our Board of Directors to
issue our preferred stock with voting or other rights or preferences that could impede the success of any attempt to change
control of us. These and other provisions may have the effect of deferring hostile takeovers or delaying changes of control
of our management.
Size of Board and Vacancies. Our
Certificate of Incorporation provides that the number of directors on our Board of Directors will be between two and seventeen.
Newly created directorships resulting from any increase in our authorized number of directors or any vacancies in our Board of
Directors resulting from death, resignation, retirement, disqualification, removal from office or other cause will be filled solely
by the vote of our remaining directors in office.
Disparate
Voting Rights. Holders of shares of our Class A common stock are entitled to three votes for each share and holders of shares
of Class B common stock are entitled to one tenth of one vote for each share on all matters to be voted on by the stockholders.
NYSE
Listing
Our
Class B common stock is listed on the NYSE and trades under the symbol “RFL.”
Transfer
Agent and Registrar
The
transfer agent and registrar for our capital stock is American Stock Transfer & Trust, LLC.
LEGAL
OWNERSHIP OF SECURITIES
We
can issue securities in registered form or in the form of one or more global securities. We describe global securities in greater
detail below. We refer to those persons who have securities registered in their own names on the books that we or any applicable
trustee or depositary or warrant agent maintain for this purpose as the “holders” of those securities. These persons
are the legal holders of the securities. We refer to those persons who, indirectly through others, own beneficial interests in
securities that are not registered in their own names, as “indirect holders” of those securities. As we discuss below,
indirect holders are not legal holders, and investors in securities issued in book-entry form or in street name will be indirect
holders.
Book-Entry
Holders
We
may issue securities in book-entry form only, as we will specify in the applicable prospectus supplement. This means securities
may be represented by one or more global securities registered in the name of a financial institution that holds them as depositary
on behalf of other financial institutions that participate in the depositary’s book-entry system. These participating institutions,
which are referred to as participants, in turn, hold beneficial interests in the securities on behalf of themselves or their customers.
Only
the person in whose name a security is registered is recognized as the holder of that security. Global securities will be registered
in the name of the depositary or its participants. Consequently, for global securities, we will recognize only the depositary
as the holder of the securities, and we will make all payments on the securities to the depositary. The depositary passes along
the payments it receives to its participants, which in turn pass the payments along to their customers who are the beneficial
owners. The depositary and its participants do so under agreements they have made with one another or with their customers; they
are not obligated to do so under the terms of the securities.
As
a result, investors in a global security will not own securities directly. Instead, they will own beneficial interests in a global
security, through a bank, broker or other financial institution that participates in the depositary’s book-entry system
or holds an interest through a participant. As long as the securities are issued in global form, investors will be indirect holders,
and not legal holders, of the securities.
Street
Name Holders
We
may terminate a global security or issue securities that are not issued in global form. In these cases, investors may choose to
hold their securities in their own names or in “street name.” Securities held by an investor in street name would
be registered in the name of a bank, broker or other financial institution that the investor chooses, and the investor would hold
only a beneficial interest in those securities through an account he or she maintains at that institution.
For
securities held in street name, we or any applicable trustee or depositary will recognize only the intermediary banks, brokers
and other financial institutions in whose names the securities are registered as the holders of those securities, and we or any
such trustee or depositary will make all payments on those securities to them. These institutions pass along the payments they
receive to their customers who are the beneficial owners, but only because they agree to do so in their customer agreements or
because they are legally required to do so. Investors who hold securities in street name will be indirect holders, not legal holders,
of those securities.
Legal
Holders
Our
obligations, as well as the obligations of any applicable trustee or third party employed by us or a trustee, run only to the
legal holders of the securities. We do not have obligations to investors who hold beneficial interests in global securities, in
street name or by any other indirect means. This will be the case whether an investor chooses to be an indirect holder of a security
or has no choice because we are issuing the securities only in global form.
For
example, once we make a payment or give a notice to the holder, we have no further responsibility for the payment or notice even
if that holder is required, under agreements with its participants or customers or by law, to pass it along to the indirect holders
but does not do so. Similarly, we may want to obtain the approval of the holders to amend an indenture, to relieve us of the consequences
of a default or of our obligation to comply with a particular provision of an indenture, or for other purposes. In such an event,
we would seek approval only from the legal holders, and not the indirect holders, of the securities. Whether and how the legal
holders contact the indirect holders is up to the legal holders.
Special
Considerations for Indirect Holders
If
you hold securities through a bank, broker or other financial institution, either in book-entry form because the securities are
represented by one or more global securities or in street name, you should check with your own institution to find out:
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how it handles securities payments and notices;
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whether it imposes fees or charges;
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how it would handle a request for the holders’
consent, if ever required;
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whether
and how you can instruct it to send you securities registered in your own name so you can be a legal holder, if that is permitted
in the future;
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how
it would exercise rights under the securities if there were a default or other event triggering the need for holders to act to
protect their interests; and
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if
the securities are in book-entry form, how the depositary’s rules and procedures will affect these matters.
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Global
Securities
A
global security is a security that represents one or any other number of individual securities held by a depositary. Generally,
all securities represented by the same global securities will have the same terms.
Each
security issued in book-entry form will be represented by a global security that we issue to, deposit with and register in the
name of a financial institution or its nominee that we select. The financial institution that we select for this purpose is called
the depositary. Unless we specify otherwise in the applicable prospectus supplement, The Depository Trust Company, New York, New
York, known as DTC, will be the depositary for all securities issued in book-entry form.
A
global security may not be transferred to or registered in the name of anyone other than the depositary, its nominee or a successor
depositary, unless special termination situations arise. We describe those situations below under “—Special Situations
When A Global Security Will Be Terminated.” As a result of these arrangements, the depositary, or its nominee, will be the
sole registered owner and legal holder of all securities represented by a global security, and investors will be permitted to
own only beneficial interests in a global security. Beneficial interests must be held by means of an account with a broker, bank
or other financial institution that in turn has an account with the depositary or with another institution that does. Thus, an
investor whose security is represented by a global security will not be a legal holder of the security, but only an indirect holder
of a beneficial interest in the global security.
If
the prospectus supplement for a particular security indicates that the security will be issued as a global security, then the
security will be represented by a global security at all times unless and until the global security is terminated. If termination
occurs, we may issue the securities through another book-entry clearing system or decide that the securities may no longer be
held through any book-entry clearing system.
Special
Considerations For Global Securities
As
an indirect holder, an investor’s rights relating to a global security will be governed by the account rules of the investor’s
financial institution and of the depositary, as well as general laws relating to securities transfers. We do not recognize an
indirect holder as a holder of securities and instead deal only with the depositary that holds the global security.
If
securities are issued only as global securities, an investor should be aware of the following:
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an
investor cannot cause the securities to be registered in his or her name, and cannot obtain non-global certificates for his or
her interest in the securities, except in the special situations we describe below;
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an
investor will be an indirect holder and must look to his or her own bank or broker for payments on the securities and protection
of his or her legal rights relating to the securities, as we describe above;
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an
investor may not be able to sell interests in the securities to some insurance companies and to other institutions that are required
by law to own their securities in non-book-entry form;
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an
investor may not be able to pledge his or her interest in the global security in circumstances where certificates representing
the securities must be delivered to the lender or other beneficiary of the pledge in order for the pledge to be effective;
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the
depositary’s policies, which may change from time to time, will govern payments, transfers, exchanges and other matters
relating to an investor’s interest in the global security. We and any applicable trustee have no responsibility for any
aspect of the depositary’s actions or for its records of ownership interests in the global security. We and the trustee
also do not supervise the depositary in any way;
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the
depositary may, and we understand that DTC will, require that those who purchase and sell interests in the global security within
its book-entry system use immediately available funds, and your broker or bank may require you to do so as well; and
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financial
institutions that participate in the depositary’s book-entry system, and through which an investor holds its interest in
the global security, may also have their own policies affecting payments, notices and other matters relating to the securities.
There may be more than one financial intermediary in the chain of ownership for an investor. We do not monitor and are not responsible
for the actions of any of those intermediaries.
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Special
Situations When A Global Security Will Be Terminated
In
a few special situations described below, a global security will terminate and interests in it will be exchanged for physical
certificates representing those interests. After that exchange, the choice of whether to hold securities directly or in street
name will be up to the investor. Investors must consult their own banks or brokers to find out how to have their interests in
securities transferred to their own names, so that they will be direct holders. We have described the rights of holders and street
name investors above.
A
global security will terminate when the following special situations occur:
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if
the depositary notifies us that it is unwilling, unable or no longer qualified to continue as depositary for that global security
and we do not appoint another institution to act as depositary within 90 days;
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if we notify any applicable trustee that we
wish to terminate that global security; or
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if
an event of default has occurred with regard to securities represented by that global security and has not been cured or waived.
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The
applicable prospectus supplement may also list additional situations for terminating a global security that would apply only to
the particular series of securities covered by the prospectus supplement. When a global security terminates, the depositary, and
neither we nor any applicable trustee, is responsible for deciding the names of the institutions that will be the initial direct
holders.
PLAN
OF DISTRIBUTION
We
may issue the securities being offered hereby from time to time in payment of a portion of the purchase price under the Purchase
Agreement up to a total dollar amount of $6,950,000, with each share of Class B common stock being deemed to have a value under
the Purchase Agreement equal to the average of the last reported sale prices of our Class B common stock on the NYSE for the ten
(10) NYSE trading days ending with the trading day immediately prior to the date of payment.
Trading
Markets and Listing of Securities
Our
Class B common stock is listed on the NYSE. We may elect to list any other securities or class or series of securities on any
exchange or market, but we are not obligated to do so. Any listing may be cancelled at any time. We cannot give any assurance
as to the liquidity of the trading market for any of the securities.
LEGAL
MATTERS
Schwell
Wimpfheimer & Associates, LLP, New York, New York, will pass for us upon the validity of the securities being offered by this
prospectus and applicable prospectus supplement, and counsel named in the applicable prospectus supplement will pass upon legal
matters for any underwriters, dealers or agents. Certain partners of the Firm are the beneficial owner of an aggregate of 9,249
shares of Class B Common Stock, consisting of (a) 2,499 unvested restricted shares Class B Common Stock, and (b) 6,750 shares
of Class B Common Stock.
EXPERTS
The
consolidated financial statements of Rafael Holdings, Inc. appearing in Rafael Holdings, Inc.’s Annual Report on Form 10-K
for the year ended July 31, 2020, have been audited by CohnReznick LLP, independent registered public accounting firm, as set
forth in their report thereon, included therein, and incorporated herein by reference. Such consolidated financial statements
are incorporated herein by reference in reliance upon such report given on the authority of such firm as experts in accounting
and auditing.
WHERE
YOU CAN FIND ADDITIONAL INFORMATION
We
are a reporting company and file annual, quarterly and current reports, proxy statements and other information with the SEC. We
have filed with the SEC a registration statement on Form S-3 under the Securities Act with respect to the securities we are offering
under this prospectus. This prospectus does not contain all of the information set forth in the registration statement and the
exhibits to the registration statement. For further information with respect to us and the securities we are offering under this
prospectus, we refer you to the registration statement and the exhibits and schedules filed as a part of the registration statement.
The SEC maintains an internet site that contains reports, proxy and information statements, and other information regarding issuers
that file electronically with the SEC, where our SEC filings are also available. The address of the SEC’s web site is http://www.sec.gov.
We maintain a website at http://www.rafaelholdins.com. Information contained in or accessible through our website does not constitute
a part of this prospectus.
INCORPORATION
OF CERTAIN INFORMATION BY REFERENCE
The
SEC allows us to “incorporate by reference” information that we file with it into this prospectus, which means that
we can disclose important information to you by referring you to those documents. The information incorporated by reference is
an important part of this prospectus. Information in this prospectus supersedes information incorporated by reference that we
filed with the SEC prior to the date of this prospectus, while information that we file later with the SEC will automatically
update and supersede the information in this prospectus. We incorporate by reference into this registration statement and prospectus
the following documents, and any future filings we will make with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the Exchange
Act after the date of the initial registration statement but prior to effectiveness of the registration statement and after the
date of this prospectus but prior to the termination of the offering of the securities covered by this prospectus (other than
current reports or portions thereof furnished under Item 2.02 or Item 7.01 of Form 8-K):
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Our
Annual Report on Form 10-K for the year ended July 31, 2020, filed with the SEC on October 29, 2020;
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Our
Quarterly Report on Form 10-Q for the year quarter ended October 31, 2020, filed with the SEC on December 15, 2020;
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Our
definitive proxy statement on Schedule 14A filed with the SEC on November 23, 2020; and
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Description
of our Class B common stock set forth under Item 11 in Post-Effective Amendment No. 3 to the Registrant’s
Registration Statement on Form 10, filed with the SEC on March 26, 2018, and contained in Exhibit 4.2 to our Annual Report on 10-K filed with SEC on October 29, 2020, including any amendment or report filed for the purpose of
updating such information.
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We
will provide each person, including any beneficial owner, to whom a prospectus is delivered, a copy of any or all of the information
that has been incorporated by reference into this prospectus but not delivered with this prospectus upon written or oral request
at no cost to the requester. Requests should be directed to: Rafael Holdings, Inc., 520 Broad Street, Newark, New Jersey 07102,
Attn: Investor Relations, or you may call us at (212) 658-1450.
RAFAEL
HOLDINGS, INC.
$6,950,000
Class B Common Stock
PROSPECTUS
January 20, 2021
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
14.
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Other Expenses of Issuance and Distribution
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The following statement sets forth the
estimated expenses in connection with the offering described in the registration statement (all of which will be borne by Rafael
Holdings, Inc.).
Securities and Exchange Commission Fee
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$
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758.25
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|
Accountants’ Fees and Expenses
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$
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10,000
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|
Legal Fees and Expenses
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$
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(1
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)
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Printing Fees
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$
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(1
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)
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Miscellaneous
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$
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(1
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)
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TOTAL
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$
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(1
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)
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(1)
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These fees are calculated based on the securities offered and the number of issuances and accordingly
cannot be estimated at this time.
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15.
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Indemnification of Officers and Directors
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Delaware law authorizes corporations to eliminate the personal
liability of directors to corporations and their stockholders for monetary damages for breach or alleged breach of the directors’
“duty of care”. While the relevant statute does not change directors’ duty of care, it enables corporations to
limit available relief to equitable remedies such as injunction or rescission. The statute has no effect on directors’ duty
of loyalty, acts or omissions not in good faith or involving intentional misconduct or knowing violations of law, illegal payment
of dividends and approval of any transaction from which a director derives an improper personal benefit.
The Company has adopted provisions in its Amended and Restated
Certificate of Incorporation, as amended, which eliminate the personal liability of its directors to the Company and its stockholders
for monetary damages for breach or alleged breach of their duty of care. The bylaws of the Company provide for indemnification
of its directors, officers, employees and agents to the fullest extent permitted by the General Corporation Law of the State of
Delaware, the Company’s state of incorporation, including those circumstances in which indemnification would otherwise be
discretionary under Delaware Law. Section 145 of the General Corporation Law of the State of Delaware permits a corporation to
indemnify any director or officer of the corporation against expenses (including attorneys’ fees), judgments, fines, and
amounts paid in settlement actually and reasonably incurred in connection with any action, suit, or proceeding brought by reason
of the fact that such person is or was a director or officer of the corporation, if such person acted in good faith and in a manner
that he or she reasonably believed to be in, or not opposed to, the best interests of the corporation, and, with respect to any
criminal action or proceeding, if he or she had no reason to believe his or her conduct was unlawful. In a derivative action, or
an action brought by or on behalf of the corporation, indemnification may be provided only for expenses actually and reasonably
incurred by any director or officer in connection with the defense or settlement of such an action or suit if such person acted
in good faith and in a manner that he or she reasonably believed to be in, or not opposed to, the best interests of the corporation,
except that no indemnification shall be provided if such person shall have been adjudged to be liable to the corporation, unless
and only to the extent that the court in which the action or suit was brought shall determine that the defendant is fairly and
reasonably entitled to indemnity for such expenses despite such adjudication of liability.
The Company may enter into indemnification agreements with certain
of its executive officers and directors, indemnifying them against certain potential liabilities that may arise as a result of
their service to the Company, and providing certain other protections. The Company also maintains insurance policies which insure
the officers and directors against certain liabilities.
EXHIBIT LIST
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(1)
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Incorporated by reference to Form 10-12G/A, filed March
26, 2018.
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(2)
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Incorporated by reference to Form 8-K, filed September
26, 2019.
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The undersigned registrant hereby undertakes:
1) To file, during any period in which
offers or sales are being made, a post-effective amendment to this registration statement: (i) to include any prospectus required
by Section 10(a)(3) of the Securities Act; (ii) to reflect in the prospectus any facts or events arising after the
effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the
aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the
foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not
exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected
in the form of prospectus filed with the Securities and Exchange Commission (the “Commission”), pursuant to Rule 424(b) if,
in the aggregate, the changes in volume and price represent no more than 20 percent change in the maximum aggregate offering price
set forth in the “Calculation of Registration Fee” table in the effective registration statement; and (iii) to
include any material information with respect to the plan of distribution not previously disclosed in the registration statement
or any material change to such information in the registration statement;
Provided, however, that paragraphs
(a)(1)(i), (a)(1)(ii) and (a)(1)(iii) do not apply if the registration statement is on Form S-3 or Form F-3 and the information
required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the
Commission by the registrant pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934 (the
“Exchange Act”), that are incorporated by reference in the registration statement, or is contained in a form of prospectus
filed pursuant to Rule 424(b) that is part of the registration statement.
2) That, for the purpose of determining
any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating
to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona
fide offering thereof.
3) To remove from registration by means
of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.
4) That, for the purpose of determining
liability under the Securities Act to any purchaser:
i. Each prospectus filed by the
registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the date the filed
prospectus was deemed part of and included in the registration statement; and
ii.
Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5) or (b)(7) as part of a registration
statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii) or
(x) for the purpose of providing the information required by Section 10(a) of the Securities Act shall be
deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus is
first used after effectiveness or the date of the first contract of sale of securities in the offering described in
prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an
underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in
the registration statement to which the prospectus relates, and the offering of such securities at that time shall be deemed
to be the initial bona fide offering thereof. Provided, however, that no statement made in a registration
statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated
by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser
with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the
registration statement or prospectus that was part of the registration statement or made in any such document immediately
prior to such effective date.
5) That, for the purpose of determining
liability of the registrant under the Securities Act to any purchaser in the initial distribution of the securities, the undersigned
registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement,
regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such
purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will
be considered to offer or sell such securities to such purchaser:
i. Any preliminary prospectus
or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;
ii. Any free writing prospectus
relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;
iii. The portion of any other
free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities
provided by or on behalf of an undersigned registrant; and
iv. Any other communication that
is an offer in the offering made by the undersigned registrant to the purchaser.
6) That, for purposes of determining any
liability under the Securities Act, each filing of the registrant’s annual report pursuant to section 13(a) or section 15(d)
of the Exchange Act (and, where applicable, each filing of an employee benefit plan’s annual report pursuant to section 15(d)
of the Exchange Act) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial
bona fide offering thereof.
7) To file an application for the purpose
of determining the eligibility of the trustee to act under subsection (a) of Section 310 of the Trust Indenture Act in
accordance with the rules and regulations prescribed by the Commission under Section 305(b)(2) of the Trust Indenture
Act.
Insofar as indemnification for liabilities
arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to
the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim
for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director,
officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the
opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final
adjudication of such issue.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933,
the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-3
and has duly caused this registration statement to be signed on its behalf by the undersigned thereunto duly authorized in the
City of Newark, State of New Jersey, on January 20, 2021.
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RAFAEL HOLDINGS, INC.
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By:
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/s/ Howard Jonas
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Howard Jonas
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Chairman of the Board of Directors and
Chief Executive Officer
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POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that
each person whose signature appears below constitutes and appoints Joyce Mason as his true and lawful attorneys-in-fact and agents,
with full powers of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign
any and all amendments to this registration statement (including post-effective amendments and any related registration statements
filed pursuant to Rule 462 and otherwise), and to file the same with all exhibits thereto, and other documents in connection therewith,
with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents and full power and authority to do
and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully for all intents and
purposes as he might or could do in person, hereby ratifying and confirming that said attorney-in-fact and agent, or any substitute
or resubstitute, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities
Act of 1933, as amended, this registration statement has been signed by the following persons in the capacities indicated and as
of January 20, 2021.
Signature
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Titles
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/s/ Howard S. Jonas
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|
Chairman of the Board and Chief Executive Officer
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Howard S. Jonas
|
|
Principal
Executive Officer
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/s/ David Polinsky
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Chief Financial Officer
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David Polinsky
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|
Principal
Financial Officer and Principal Accounting Officer
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/s/ Stephen Greenberg
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Director
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Stephen Greenberg
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/s/ Rachel Jonas
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Director
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Rachel Jonas
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/s/ Boris C. Pasche
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Director
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Dr. Boris C. Pasche
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/s/ Michael J. Weiss
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Director
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Dr. Michael J. Weiss
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EXHIBIT INDEX
|
(1)
|
Incorporated by reference to Form 10-12G/A, filed March
26, 2018.
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(2)
|
Incorporated by reference to Form 8-K, filed September
26, 2019.
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