ALACHUA, FL--(Marketwired - April 16, 2014) - CTD Holdings, Inc. (OTCQB: CTDH), a manufacturer and distributor of cyclodextrins for the pharmaceutical, medical device, cosmetics and other markets, announced today that it has closed on a Securities Purchase and Collaboration Agreement with Novit LP an affiliated entity of the USP Group, a major manufacturer and distributor of over-the-counter pharmaceutical products in Poland.
The transaction involved the signing of a Securities Purchase and Collaboration Agreement under which CTD Holdings issued 4 million shares of Common Stock to Novit LP at $0.25 per share, resulting in a $1,000,000 capital infusion to the Company.
Pursuant to the terms of the Agreement, the Company also agreed to give USP Zdrowie Sp. z o.o. ("USPZ"), an affiliate of Novit LP, a "first look" for 60 days from the date of notice to USPZ by the Company, at any new products involving cyclodextrin technology developed or formulated by the Company for potential use by USPZ in its own product portfolio in certain Middle & Eastern European markets, prior to the Company marketing or selling such for use in the over-the-counter pharmaceutical markets products in the same region. Furthermore, the Company has agreed to explore opportunities for its cyclodextrin products to offer improvements to USPZ's product portfolio and to collaborate on new product development.
In connection with the Agreement, the Company's Board of Directors voted to increase its size from five (5) members to six (6) members, and voted to fill the resulting vacancy, effective as of April 9, 2014, with F. Patrick Ostronic, an officer and director of several affiliated entities within the USP Group.
Scarsdale Equities, LLC acted as financial advisor and exclusive placement agent of the Company in connection with the Securities Purchase and Collaboration Agreement.
A complete description of the transaction can be found in the Current Report on Form 8-K filed with the Securities Exchange Commission in connection with the transaction.
"This transaction opens the door to collaboration with a leading company in a growing market," said Dr. Jeffrey Tate, President of CTD Holdings and Chief Executive of two of its operating divisions. "Access to the impressive manufacturing and distribution capabilities of the USP Group will accelerate our product development and enhance our ability to move finished products to customers. It opens virgin sales territory for the Company."
"I look forward to exploring new product opportunities in Eastern Europe," said Mr. Strattan, Company Chairman & CEO. "I welcome our new Board member and look forward to his contributions to the team."
The proceeds of the transaction will be used for business development purposes, including the Company's priorities for 2014: expansion of e-commerce sales; production of ultra-pure cyclodextrin derivatives for the research, cosmetic, and medical industries; and completion of the Drug Master File for the Trappsol® Cyclo™ orphan drug. In 2010 the U.S. Food & Drug Administration designated Trappsol® Cyclo™ as an orphan drug for the treatment of Niemann-Pick disease, Type C, a rare and fatal genetic condition that typically develops in children under 10 years of age. In the U.S. treatment with Trappsol® Cyclo™ is supervised by a physician holding an approved Investigational New Drug Protocol.
About the Company:
The CTD Holdings, Inc. Family of Companies manufacture and market the trademarked Trappsol® and Aquaplex® cyclodextrins, cyclodextrin derivatives, and cyclodextrin complexes for research, nutrition, cosmetic and medical markets. NanoSonic Products, Inc. operates the world's only cGMP pulse drying facility for the production of ultra-pure cyclodextrin derivatives and pharmaceutical grade Aquaplex® cyclodextrin complexes. The companies offer a wide variety of cyclodextrin related manufacturing services to worldwide customers, including custom formulation, manufacturing, and commercial scale supply of pharmaceutical grade cyclodextrin complexes. For additional information, visit the Company's websites: www.ctd-holdings.com and www.cyclodex.com
Safe Harbor Statement:
This press release contains "forward-looking statements" about the Company's current expectations about future results, performance, prospects and opportunities. Statements that are not historical facts, such as "anticipates," "believes" and "expects" or similar expressions, are forward-looking statements. Forward-looking statements also include any statements relating to the possibility of future collaboration developments or sales under the agreement described in this press release, none of which are assured. These statements are subject to a number of risks, uncertainties and other factors that could cause actual results in future periods to differ materially from what is expressed in, or implied by, these statements. The factors which may influence the Company's future performance include the Company's ability to obtain additional capital to expand operations as planned, success in attracting additional customers and profitable contracts, and regulatory risks associated with producing food and pharmaceutical grade products. These and other risk factors are described from time to time in the Company's filings with the Securities and Exchange Commission, including, but not limited to, the Company's reports on Forms 10-K and 10-Q. Unless required by law, the Company assumes no obligation to update or revise any forward-looking statements as a result of new information or future events.