Cannasat Therapeutics Inc.
TSX VENTURE : CTH

Cannasat Therapeutics Inc.

June 23, 2008 15:29 ET

Cannasat Therapeutics Receives $1.12 Million From Divesture of Prairie Plant Systems Equity Position

TORONTO, ONTARIO--(Marketwire - June 23, 2008) - Cannasat Therapeutics Inc. (the "Corporation") (TSX VENTURE:CTH), the developer of novel cannabinoid-based pharmaceutical products, announced today that it has reached an agreement to sell the Company's 12% equity stake in the privately-held, Saskatoon-based Prairie Plant Systems. The $1.12 million sale price is equal to the price Cannasat originally paid for PPS shares in August 2004.

"Cannasat has made the decision to divest its position in Prairie Plant Systems and end the Strategic Alliance Agreement between the two companies," said David Hill, Chief Executive Officer. "This decision marks an important strategic shift for the Company, as we now focus all our efforts and resources developing safe and therapeutically effective pharmaceutical products. In particular, we remain focused on further advancing our CAT 310 and CAT 320 drug candidates in clinic trials. CAT 310 is a product for the treatment of neuropathic pain and other conditions, whereas CAT 320 is designed for the treatment of anxiety and other mood disorders."

"Cannasat would like to thank Brent Zettl and Prairie Plant Systems' Board of Directors for all their hard work and cooperation, and wish them continued success in their innovative plant-made pharmaceutical business."

ABOUT CANNASAT THERAPEUTICS

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

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