Cannasat Therapeutics Inc.
TSX VENTURE : CTH

Cannasat Therapeutics Inc.

August 31, 2009 16:01 ET

Cannasat Therapeutics Reports Results for the Six Months Ended June 30, 2009

TORONTO, ONTARIO--(Marketwire - Aug. 31, 2009) - Cannasat Therapeutics Inc. (TSX VENTURE:CTH), a clinical stage pharmaceutical company developing products to treat neurological disorders such as neuropathic pain and schizophrenia, today announced its results for the six months ended June 30, 2009. Unless specified otherwise, all amounts are in Canadian dollars.

Operational Highlights

- During Q2 2009, announced the completion of a Phase 1(b) clinical trial for Relivar, a potential treatment for patients with neuropathic pain and other conditions.

- During Q2 2009, continued early stage formulation development work on Modulyn, a potential treatment for schizophrenia, anxiety and other mood disorders.

- On May 15, 2009, announced the appointment of Dr. Nathan Bryson as Chief Scientific Officer.

- On May 25, 2009, announced that the United States Patent and Trademark Office has issued a Notice of Allowance for a U.S. Patent Application, which forms the basis for Cannasat's lead product, Relivar. The Corporation is the exclusive licensee of the patent application.

- On June 10, 2009, announced the filing of a final short form prospectus in each of the provinces of British Columbia, Alberta and Ontario for its previously announced offering of units. The Prospectus qualified the distribution of a minimum of 7,500,000 and a maximum of 25,000,000 units at a price of $0.10 per Unit. Each Unit consists of one common share and one common share purchase warrant. Each Warrant shall entitle the holder to purchase one additional common share of the Corporation at a price of $0.15 for a period of two years following the date of closing of the Offering.

Financial Highlights

- Cash and cash equivalents at June 30, 2009 of $287,170 (December 31, 2008: 805,128).

- Net loss of $409,959 for the three months ended June 30, 2009 (June 30, 2008: $372,956), in line with expectation.

- Report 78,513,849 common shares outstanding at June 30, 2009.

- Subsequent to the end of the second quarter, the company announced the closing of the first and second tranches of its short form prospectus offering of units, raising aggregate gross proceeds of $929,850.

"The second quarter was highlighted by the announcement of the favourable USPTO ruling which forms the basis for our lead product, Relivar, as well as the successful completion of our Phase 1(b) clinical trial for Relivar. The patent ruling and the positive results of this study represent key milestones for our company, and formed the basis of our short form prospectus offering led by Sandfire Securities," said David Hill, Chief Executive Officer of Cannasat. "We look forward to the second half of 2009, as we continue to advance our innovative and promising drug candidates."

Effective today, the Corporation granted stock options to acquire 1,550,000 shares in the capital of the Corporation. The stock options will be granted to directors, officers and an employee at an exercise price equal to $0.10 per share and with an expiry of 5 years. In particular, 300,000 stock options will be granted to Nathan Bryson (CSO), 250,000 to Rochelle Stenzler (Director), 200,000 to David Hill (CEO), 100,000 to each of Andrew Williams (COO/CFO), Dr. Julia Levy (Director), Peter Palframan (Director), Dr. David Pattenden (Director), Dr. Alan Ryley (Director), Alan Torrie (Director) and Donald Ziraldo (Director).

About Cannasat Therapeutics

Cannasat is a clinical stage pharmaceutical company developing products to treat neurological disorders such as neuropathic pain and schizophrenia. Cannasat currently has two new drugs in its pipeline: Relivar and Modulyn. Over the next 12 months Cannasat plans to advance Relivar and Modulyn with further clinical testing and is positioning itself to enter marketing agreements with select Pharma partners. Pharma collaborations will create a pathway towards the future commercialization, as well as provide important new investment to develop a pipeline of additional CNS/neurology product candidates. More information about Cannasat (TSX VENTURE:CTH) is available at www.cannasat.com.

NOTE REGARDING 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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