Cannasat Therapeutics Inc.

Cannasat Therapeutics Inc.

March 05, 2010 04:15 ET

Cannasat Therapeutics Reports Results for the Year Ended December 31, 2009

TORONTO, ONTARIO--(Marketwire - March 5, 2010) - Cannasat Therapeutics Inc. (TSX VENTURE:CTH), a specialty clinical development pharmaceutical company targeting CNS diseases, today announced its results for the year ended December 31, 2009. Unless specified otherwise, all amounts are in Canadian dollars.

Operational Highlights

The following achievements were made during the last year:

  • Cannasat reached a key scientific milestone with Relivar, a potential treatment for neuropathic pain and other conditions. Positive results of the study were released on April 14, 2009. Relivar is the first buccal dronabinol drug delivery product. Buccal delivery allows for drug absorption from the mouth directly into the bloodstream as opposed to the intestinal tract absorption seen with oral tablet technologies.
  • Cannasat announced Nathan Bryson, PhD, as new Chief Scientific Officer.  On May 15, 2009, Dr. Bryson was named Chief Scientific Officer having previously worked as a consultant and advisor to Cannasat since November 2007. Dr. Bryson draws from more than 18 years of experience in pharmaceutical development, having held scientific and executive management level positions at Flamel Technologies, Bionisis and Matregen Corp. Dr. Bryson has a strong knowledge of early-stage drug product development and formulation and has (co)authored more than 20 patents. He holds a BSc in Chemistry from Auburn University and a PhD in Radiopharmaceutical Chemistry from the Massachusetts Institute of Technology (MIT).
  • Cannasat announced a favourable decision from the United States Patent and Trademark Office ("USPTO"). On May 25, 2009, Cannasat announced that the USPTO has issued a Notice of Allowance for a U.S. Patent Application which forms the basis for Cannasat's lead product, Relivar. Cannasat is the exclusive licensee of the patent application. The newly allowed patent application relates to Cannasat's proprietary technology which provides for the effective drug absorption of dronabinol in the buccal cavity via a tablet. The claims broadly encompass the active complex, a pharmaceutical composition containing the same, and a method of treating patients for a variety of indications where dronabinol is known to be efficacious, including pain and nausea.
  • Cannasat announced that Anthony Giovinazzo was appointed the new President and Chief Executive Officer. On November 16, 2009, Cannasat announced that Mr. Giovinazzo was appointed to succeed David Hill as Chief Executive Officer, and joined the Company as President and Chief Executive Officer. 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.
  • Cannasat announced that it has entered into a Letter of Intent with Adagio Pharmaceuticals. On February 4, 2010, subsequent to the year end, Cannasat was granted the option by Adagio to execute a proposed exclusive, worldwide agreement to license all intellectual property relating to APL-130277, a reformulation of an approved Parkinson's drug. The two parties are negotiating an exclusive worldwide license that would result in Cannasat assuming product development and commercialization rights to APL-130277 from Adagio in return for development milestones and royalties to Adagio, including common shares of Cannasat. The license agreement includes an exclusive option period for the first 12 months which allows Cannasat to conduct further due diligence and proof-of concept studies for APL-130277 prior to executive the full license. All aspects of the option and license agreements are subject to Board approval.
  • Cannasat announced that it has entered into a Letter of Intent with IntelGenx Corp. On March 2, 2010, subsequent to the year end, Cannasat and IntelGenx Corporation signed a Letter-of-Intent to engage in a project to further develop tablets containing delta-9 tetrahydrocannabinol ("THC") for sublingual or buccal delivery of THC. Once the Formulations have been completed, one or more partners will be retained for clinical development and commercialization of the Products. Upon successfully entering into a sub-licensing agreement with a marketing and/or commercialization partner, the Parties agree to share royalties received from the sale of the Products.

Financial Highlights

  • Cash and cash equivalents at December 31, 2009 of $483,197 (2008: $805,128).
  • On February 27, 2009, Cannasat raised gross proceeds of $387,000 through the issuance of common shares and share purchase warrants.
  • 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.
  • On December 18, 2009, agreed to settle $185,287 in debt by issuing 1,852,870 common shares at a deemed price of $0.10 per share.
  • Net loss of $1,751,107 for the year ended December 31, 2009 (2008: $2,003,126), in line with expectation.
  • Report 89,665,219 common shares outstanding at December 31, 2009 (2008: 74,643,849)

In addition, effective March 3, 2010, the Corporation granted stock options to acquire 425,000 shares in the capital of the Corporation. The stock options will be granted to a director, an officers and an employee at an exercise price equal to $0.10 per share and with an expiry of 5 years. In particular, 125,000 stock options will be granted to Ron Hosking (Director), 150,000 to Andrew Williams (COO/CFO), and 150,000 to Sara Lee Irwin (Director, Investor Relations).

In announcing the results, Anthony Giovinazzo, President and Chief Executive Officer of Cannasat, said: "My mandate, since my appointment as President and CEO on November 16th, 2009, is to bring value to Cannasat's existing assets while building a portfolio of 2-3 drug candidates. The rationale behind this strategy is to increase shareholder value through effectively managing risk, focusing on a core competency of taking projects to Phase 2 clinical proof-of-concept, and making Cannasat more attractive to institutional investors. Creating critical mass will generate analyst coverage, and ultimately bring greater liquidity to our shares. We have a number of important newsflow events expected in 2010 and look forward to updating shareholders with news of our progress."

About Cannasat Therapeutics

Cannasat is a specialty clinical development pharmaceutical company targeting diseases of the brain. Cannasat has a lower risk Parkinson's drug candidate, which is a reformulation of an approved drug that can address a moderate to severe patient population. Cannasat also has a proprietary formulation technology for cannabinoid drug candidates, which may be used to treat neuropathic pain associated with multiple sclerosis and cancer, as well as for nausea/vomiting and appetite stimulation. Cannasat's strategy is to grow its portfolio of drug candidates through in-licensing and acquisitions, and to advance projects to Phase 2 proof-of-concept clinical studies. Once the drug candidates are sufficiently derisked, Cannasat intends to out-license the programs to the appropriate Pharma marketing partners for a combination of upfront, milestone, and royalty payments. More information about Cannasat (TSX VENTURE:CTH) is available at

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 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.

Contact Information