Cannasat Therapeutics Inc.
TSX VENTURE : CTH

Cannasat Therapeutics Inc.

April 25, 2007 17:46 ET

Cannasat Therapeutics Reports Results for the Year Ended December 31, 2006

TORONTO, ONTARIO--(CCNMatthews - April 25, 2007) - Cannasat Therapeutics Inc. (TSX VENTURE:CTH), the developer of novel cannabinoid-based pharmaceutical products, today announced its results for the year ended December 31, 2006.

Operational Highlights

- Completed go public transaction in March 2006, through an amalgamation with Lonsdale Public Ventures. Shares are trading on the Toronto Venture Exchange under the symbol "CTH".

- Continued to advance CAT 310, a rapid onset neuropathic pain product, towards the end of pre-clinical development in preparation for clinical testing.

- Reached collaborative agreement with Montreal-based IntelGenx Corporation to co-develop a number of novel cannabinoid-based products, starting with CAT 310.

- Completed a successful Pre-Clinical Trial Application meeting with Health Canada officials to discuss CAT 310. The Company submitted the intended uses, product rationale, pre-clinical pharmacokinetic data, toxicology data, and the Phase 1 protocol for review by the regulators.

- Accelerated development of CAT 210, a local neuropathic pain product, in preparation for in vivo pre-clinical testing.

- Received a commitment from the National Research Council of Canada Industrial Research Assistance Program to help fund pre-clinical research and development of CAT 210.

- Announced that Saskatoon-based Prairie Plant Systems, a company in which Cannasat owns an equity interest and has a strategic partnership, received a $2.1 million, 12-month extension to continue to grow medical marijuana for Health Canada.

Financial Highlights

- Balance sheet strengthened with cash inflow of $2,118,685 through the allotment and issuance of common shares and share purchase warrants, as well as cash acquired through the amalgamation transaction.

- Cash and cash equivalents at December 31, 2006 of $1,210,363 (2005: $632,219).

- Net loss of $2,318,735 (2005: $1,903,752), in line with expectation.

- Report 66,014,957 common shares outstanding at December 31, 2006.

In announcing the results, David Hill, Chief Executive Officer of Cannasat, said:

"During 2006, Cannasat made good progress in advancing our CAT 310 and CAT 210 product candidates, including a successful Pre-Clinical Trial Application meeting with Health Canada and the announcement of a collaboration agreement with IntelGenx. The agreement with IntelGenx is significant, as we will benefit from IntelGenx's considerable formulation and drug development expertise."

"The public listing on the Toronto Venture Exchange is important, as we believe this will assist our efforts to attract additional capital to build our cannabinoid product portfolio. The commitment made to the company by the National Research Council also further served to strengthen our credibility as a leader in cannabinoid-based research and development," Mr. Hill added.

"We look forward to an exciting 2007 in which we will seek to begin clinical testing with CAT 310, as well as advance our other cannabinoid-based product candidates."

ABOUT CANNASAT THERAPEUTICS INC.

Cannasat Therapeutics is researching the therapeutic benefits of cannabis and developing new cannabinoid pharmaceutical products. Cannasat is pursuing two complementary business strategies. The first consists of development of novel cannabinoid-based pharmaceutical products through application of drug delivery technologies to be introduced to the market through the traditional regulatory drug approval process. The second is to promote medicinal cannabis research and education with Cannasat's business partner, Prairie Plant Systems Inc., the only government licensed grower and distributor of medicinal cannabis in Canada.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information