Cyclo Therapeutics Inc (CYTH)

[cyclodex]

Clearing up the dividend issue

In December of 2009, Vistra Growth Partners (VGP) was sold back to Lou Weltman, the President of VGP for a dollar. Mr. Weltman was not re-elected to CTDH's board of directors for 2010. While only one company paid Mr. Weltman in stock for his services, that stock (by contract 50% to Weltman; 50% to CTDH) was given no value by CTDH's auditors.

As a result, this stock could not be dividended out to shareholders of CTDH as was originally agreed in the contract creating VGP. It seemed a waste of money to CTDH to go to the expense of providing dividends that had questionable value and could provide no financial benefit to the parent company.

If you still have any questions please give Mr. Stratten a call at 386-454 0087.

David Corner
CTD Holdings Inc.