Cannasat Therapeutics Inc.
TSX VENTURE : CTH

Cannasat Therapeutics Inc.

June 10, 2009 19:12 ET

Cannasat Therapeutics Prices Offering of Units

TORONTO, ONTARIO--(Marketwire - June 10, 2009) -

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

Cannasat Therapeutics Inc. ("Cannasat" or the "Corporation") (TSX VENTURE:CTH) announced today that it has filed a final short form prospectus dated June 10, 2009 (the "Prospectus") in each of the provinces of British Columbia, Alberta and Ontario for its previously announced offering of units. The Prospectus qualifies the distribution (the "Offering") of a minimum of 7,500,000 and a maximum of 25,000,000 units (the "Units") at a price of $0.10 per Unit (the "Offering Price"). Each Unit will consist of one common share and one common share purchase warrant (a "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.

The Corporation has entered into an agency agreement with Sandfire Securities Inc. (the "Agent") in respect of the Offering as contemplated by the Corporation's preliminary short form prospectus dated May 19, 2009 (the "Agency Agreement"). Under the terms of the Agency Agreement, the Corporation will offer a minimum of 7,500,000 and a maximum of 25,000,000 Units at the Offering Price for gross proceeds to the Corporation of a minimum of $750,000 and a maximum of $2,500,000. The Agent will be granted non-transferable options (the "Compensation Options") to purchase up to 10% of the common shares sold under the Offering. Each Compensation Option will entitle the Agent to acquire one common share at a price of $0.10 per share until the date which is two years following the date of closing of the Offering. In addition, the Agent will be granted an option (the "Over-Allotment Option") to purchase up to 3,750,000 additional Units (the "Over-Allotment Units"), having the same characteristics as the Units at the Offering Price to cover over-allotments, if any, and for market stabilization purposes. The Over-Allotment Option may be exercised up to 30 days after the date of closing of the Offering, in whole or in part at the sole discretion of the Agent.

The Corporation intends to use the net proceeds of the Offering to fund further research and development of its drug candidates Relivar and Modulyn, and for general and administrative expenditures.

This news release does not constitute an offer to sell, or the solicitation of an offer to buy, the Units in any jurisdiction, including the United States, or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption therefrom, nor shall there be any sale of the Units in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. The Units being offered will not be, and have not been, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, a U.S. person, absent U.S. registration or an applicable exemption therefrom.

ABOUT CANNASAT THERAPEUTICS

Cannasat is a clinical stage pharmaceutical company developing products to treat neurological disorders such as neuropathic pain and schizophrenia. Cannasat 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.

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

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