HIGH SPRINGS, Fla., Sept. 8, 2005 (PRIMEZONE) -- CTD Holdings, Inc. (OTCBB:CTDH) today announced that its has executed a letter of intent (LOI) with Cyclolab Research & Development Laboratory, Ltd. of Budapest, Hungary that will result in CTD Holding acquiring majority interest in Cyclolab.
Cyclolab is the leading European manufacturer of GMP Cyclodextrins and CD complexes on a pilot plant basis. Cyclolab, under the leadership of the late Dr. Joszef Szejtli, grew from a small specialty CD research shop in the early 1980's to the most prestigious research and pilot plant manufacturer of CDs and CD complexes in Europe today. During the past three years, Cyclolab has sustained a 10-15% growth rate, while achieving annual revenues of $2-3 million USD per year.
Rick Strattan, the president/CEO of CTD noted that an accretive merger between the leader in sales/marketing of CDs and the most knowledgeable CD research organization in the world promises a strong business position in the blossoming worldwide CD industry. "Together, we intend to capitalize on our combined strengths, focusing on the development of a steady stream of new and useful commercial products benefiting from the incorporation of CDs," stated Mr. Strattan.
The terms of the LOI contemplate the purchase of a majority ownership in Cyclolab by CTD Holdings in exchange for a combination of cash and stock. Upon completion of the transaction, Cyclolab will become a subsidiary of CTD Holdings. The closing of the transaction is conditioned upon the completion of due diligence by both parties, as well as the execution of a definitive agreement between the parties.
"This transaction represents a major step forward in the strategic plan of both Cyclolab and CTD Holdings," added Mr. Strattan. "Our goal is to bring the merged companies to the level of worldwide scientific and commercial excellence that will be a fitting legacy to the late Dr. Joszef Szejtli, the late founder of Cyclolab who was considered to be one of the foremost authorities in the field of cyclodextrins."
About CTD Holdings
CTD Holdings sells cyclodextrins (CDs) and provides consulting services in the area of commercialization of cyclodextrins applications. CTD Holdings is a considered to be a leading consultant in determining manufacturing standards and costs for CDs. CDs have applications in the areas of biotechnology, cosmetics, foodstuffs, pharmaceuticals, and toxic waste treatment, among others. CDs help bring together oil and water and have potential applications anywhere these materials must be used together. CDs can improve the solubility and stability of a wide range of drugs, as many promising drug compounds are unusable or have serious side effects because they are either too unstable or too insoluble in water.
This press release contains forward-looking statements, some of which may relate to CTD Holdings, Inc., and which involve numerous risks and uncertainties. Actual results, performance, or achievements could differ materially from those anticipated in such forward-looking statements as a result of certain factors, including those set forth in CTD Holdings, Inc.'s filings with the Securities and Exchange Commission.