Cannasat Therapeutics Inc.
TSX VENTURE : CTH

Cannasat Therapeutics Inc.

November 27, 2009 16:12 ET

Cannasat Therapeutics Reports Results for the Nine Months Ended September 30, 2009

TORONTO, ONTARIO--(Marketwire - Nov. 27, 2009) - Cannasat Therapeutics Inc. (TSX VENTURE:CTH), a clinical stage pharmaceutical company developing products to treat neurological disorders, today announced its results for the nine months ended September 30, 2009. Unless specified otherwise, all amounts are in Canadian dollars.

Financial Highlights

  • On August 6, 2009, announced the closing of a first tranche of its previously announced short form prospectus offering of units raising gross proceeds of $750,950.
  • On August 31, 2009, announced the closing of a second tranche of its previously announced short form prospectus offering of units raising gross proceeds of $178,900.
  • Cash and cash equivalents at September 30, 2009 of $811,080 (December 31, 2008: $805,128).
  • Net loss of $336,154 for the three months ended September 30, 2009 (September 30, 2008: $556,919).
  • Report 87,812,349 common shares outstanding at September 30, 2009.

Operational Highlights

  • During Q3 2009, Management suspended all research and development activities while the Corporation sought to raise additional capital. While the Corporation successfully raised gross proceeds of $928,950 in August 2009, Management continues to actively seek additional capital from private and institutional investors.
  • Subsequent to the quarter end, on November 16, 2009, announced that Anthony J. Giovinazzo has been appointed to succeed David Hill as Chief Executive Officer, and joins the Company as President and Chief Executive Officer. Mr. Giovinazzo is an executive with 31 years of international business experience, of which the last 16 years were in drug development for treatment of central nervous system diseases. Mr. Hill will continue with the company as Vice Chairman and will become an advisor to Mr. Giovinazzo. Further to the Corporation's press release dated November 16, 2009, the Corporation granted Mr. Giovinazzo stock options to acquire 500,000 shares in the capital of the Corporation. The exercise price of the stock options granted to Mr. Giovinazzo has been amended from $0.09 to $0.10. The stock options will expire 5 years from the date of grant.

"I am encouraged that our team was able to raise additional capital in the third quarter of 2009," stated Anthony Giovinazzo, Cannasat's new President and Chief Executive Officer. "This was no small achievement in a challenging economic environment. I look forward to 2010 as we seek to execute on our strategy to grow our portfolio of CNS drug candidates through in-licensing and acquisitions. I believe this approach should allow us to raise additional capital to reach meaningful milestones, and, importantly, add substantial value to Cannasat and its shareholders."

About Anthony J. Giovinazzo

Mr. Giovinazzo has a total of 31 years of international business experience, of which the last 16 years have been in the CNS field. His experience ranges from the investment side as the former President of the Neuroscience Partners Fund, a limited partnership investing in CNS companies primarily in the US and Canada, and subsequently, as the CEO of several companies. Mr. Giovinazzo has extensive experience in licensing drug candidates both in-bound and out-bound, as well as mergers and acquisitions, the management of clinical development, and building small execution focused teams. In December 2005, he completed the sale of Cita NeuroPharmaceuticals Inc. to Vernalis Plc (LSE: VER), at a substantial above average valuation increase. He had built Cita over the period from September 2002 to December 2005, from a single early stage drug candidate, incubated within Queen's University, to an independent CNS company with three mid to late stage drug candidates. His internationally experienced management team at Cita have recently been written up in Nature Biotechnology, as a good example of how to manage value creation with a small highly focussed and execution oriented team. Before joining Cannasat, Mr. Giovinazzo was the CEO of Cervelo Pharmaceuticals Inc., a venture backed company that raised US $36 million in October 2007. Mr. Giovinazzo is one of the few CEO's in the industry that holds the Chartered Directors designation, which is granted jointly by the Conference Board of Canada and the DeGroote School of Business at McMaster University. He has also completed the Leadership and Strategy in Pharmaceuticals and Biotech program, at the Harvard Business School.

About Cannasat Therapeutics

Cannasat is a clinical stage pharmaceutical company developing products to treat neurological disorders. Cannasat's lead product is Relivar, which is targeted at neuropathic pain. Cannasat's strategy is to grow its portfolio of drug candidates through in-licensing and acquisitions. This approach is intended to facilitate the raising of additional rounds of capital that will fund Phase 2 proof-of-concept clinical studies, and, ultimately, out-licensing agreements with Pharma marketing partners. More information about Cannasat (TSX VENTURE:CTH) is available at www.cannasat.com.

Forward Looking Statements

This press release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Corporation to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks and uncertainties relating to the Corporation's business disclosed under the heading "Risk Factors" in the Corporation's current Annual Information Form and its other filings with the various Canadian securities regulators which are available online at www.sedar.com. Although the Corporation has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Corporation does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

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