Cannasat Therapeutics Inc.
TSX VENTURE : CTH

Cannasat Therapeutics Inc.

August 12, 2008 18:19 ET

Cannasat Therapeutics Inc. Announces Closing of Private Placement

TORONTO, ONTARIO--(Marketwire - Aug. 12, 2008) - 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 August 8, 2008.

Cannasat issued an aggregate of 1,175,000 Units at a price of $0.20 per Unit raising gross proceeds of $235,000. Each Unit consists of one common share and one share purchase warrant. Each share purchase warrant entitles the holder to acquire one common share at a price of $0.22 for a period ending on the earlier of 18 months from the closing date, and a period ending 20 days after prior written notice from Cannasat that the closing price of its shares on the principal stock exchange of Cannasat has been at least $0.30 per share for 20 consecutive trading days.

The common shares issued under the Private Placement are subject to a hold period of four months expiring on December 8, 2008.

The proceeds from the offering will be used to fund Cannasat's ongoing research and development activities, including further Phase 1 clinical testing for CAT 310, as well as continued advanced formulation work for CAT 320. CAT 310 is being developed for the treatment of neuropathic pain and other conditions. CAT 320 is a product for the treatment of anxiety and other mood disorders.

ABOUT CANNASAT THERAPEUTICS

Founded in 2004, Cannasat is clinical stage pharmaceutical research and development company trading on the Toronto Venture Exchange (TSX VENTURE:CTH). Cannasat is developing cannabinoid-based pharmaceutical products using proprietary formulation and drug delivery technologies. Cannabinoids have broad therapeutic applications that are believed to include the treatment of neuropathic pain, chronic pain, depression, anxiety and movement disorders. More information about Cannasat is available at www.cannasat.com.

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

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