Cannasat Therapeutics Inc.
TSX VENTURE : CTH

Cannasat Therapeutics Inc.

August 06, 2009 16:32 ET

Cannasat Therapeutics Completes First Tranche of Prospectus Offering

TORONTO, ONTARIO--(Marketwire - Aug. 6, 2009) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO U.S. NEWS WIRE SERVICES

Cannasat Therapeutics Inc. ("Cannasat") (TSX VENTURE:CTH) is pleased to announce that it has completed a first tranche of its previously announced short form prospectus offering of units. Cannasat has issued and sold 7,509,500 units at a price of $0.10 per unit raising gross proceeds of $750,950. Each unit consists of one common share of Cannasat and one common share purchase warrant. Each warrant entitles the holder to purchase one additional common share at a price of $0.15 per share for a period of two years from the date of issue. Cannasat expects to use the net proceeds from the offering to fund working capital and for general corporate purposes, including further research and development of its Relivar and Modulyn drug candidates.

Sandfire Securities Inc. acted as Cannasat's agent in connection with the sale of the units. Cannasat paid cash commissions of $60,067, a corporate finance fee of $25,000, and issued 750,950 non-transferable compensation options, each exercisable to purchase one Cannasat common share at a price of $0.10 per share for a period of two years from the date of issue, on the closing of the first tranche of the offering. The units are continuing to be marketed with a view to completing further tranches up to the aggregate maximum offering of 25,000,000 units.

The units were offered by way of a short form prospectus in the provinces of British Columbia, Alberta and Ontario.

This press release does not constitute an offer of the securities described herein in any jurisdiction. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state and may not be offered or sold in the United States absent an exemption from registration.

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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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