Cannasat Therapeutics Inc.
TSX VENTURE : CTH

Cannasat Therapeutics Inc.

March 03, 2009 10:24 ET

Cannasat Therapeutics Announces Closing of Private Placement

TORONTO, ONTARIO--(Marketwire - March 3, 2009) - Cannasat Therapeutics Inc. (TSX VENTURE:CTH) ("Cannasat") is pleased to announce that it has closed a non-brokered private placement (the "Private Placement") of units ("Units") effective February 27, 2008.

Cannasat issued an aggregate of 3,870,000 Units at a price of $0.10 per Unit raising gross proceeds of $387,000. Each Unit is comprised of one common share (a "Share") and one half of a share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder to purchase one Share at a price of $0.15 per Share for a period of 24 months from the date of closing.

The Shares and Warrants issued under the Private Placement are subject to a hold period of four months expiring on June 27, 2009 in accordance with applicable securities laws and the policies of the TSX Venture Exchange Inc. (the "Exchange").

The proceeds from the Private Placement will be used to fund Cannasat's ongoing CAT 310 and CAT 320 research and development activities as well as working capital and general corporate purposes.

Certain insiders of Cannasat including the Chief Executive Officer, Chief Scientific Officer, Chief Operating Officer/Chief Financial Officer and members of the board of directors, participated on the same terms in the Private Placement for an aggregate of approximately 20% of the issued Units.

The sale of Units to these insiders constitutes a "related party transaction" pursuant to the policies of the Exchange and Multilateral Instrument 61-101 ("MI 61-101"). However, the Private Placement is exempt from the formal valuation requirement and the minority shareholder approval requirement found in MI 61-101 on the basis that neither the fair market value of the Units nor the consideration paid by such insiders for Units exceeds 25% of the market capitalization of Cannasat. A material change report in respect of the Private Placement was not filed at least 21 days in advance of the closing of the Private Placement due to the uncertainty of current market conditions.

The Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. The Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved of the contents of this release.

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: CAT 310 and CAT 320. CAT 310 is currently in Phase I clinical trials and CAT 320 is scheduled to begin Phase I trials in 2009. More information about Cannasat (TSX VENTURE:CTH) is available at www.cannasat.com.

FORWARD LOOKING STATEMENTS

Certain statements in this release may constitute forward-looking statements. Such forward-looking statements involve risks, uncertainties and other factors, which may cause actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.

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