TORONTO, ONTARIO--(Marketwire - June 2, 2010) -
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Cynapsus Therapeutics Inc. ("Cynapsus") (formerly Cannasat Therapeutics Inc.) (TSX VENTURE:CTH) announced today that the terms and conditions for the previously announced brokered private placement have been amended due to market conditions. Each of the units (each a "Unit") will now be priced at $0.075 per Unit (the "Offering") for gross proceeds of up to CDN$2,500,000. Each Unit will consist of one common share in the capital of Cynapsus and one common share purchase warrant of Cynapsus (each a "Warrant"). Each Warrant entitles the holder to acquire one common share at a price of C$0.125 for a period ending on the earlier of 24 months from the closing date and a period ending 20 days after prior written notice from Cynapsus that the closing price of its shares on the principal stock exchange of Cynapsus has been at least C$0.20 per share for 20 consecutive trading days.
Cynapsus has retained Wellington West Capital Inc. (the "Agent") to act as lead placement agent.
The proceeds from the Offering will be used to fund Cynapsus' ongoing research and development activities, the search for an additional drug candidate, and for working capital purposes.
The Offering will be made to "accredited investors" in the Provinces of Alberta, British Columbia, Manitoba, Ontario, Quebec and Saskatchewan and such other jurisdictions agreed upon by Cynapsus and the Agent.
The Offering and closing of the financing is subject to regulatory approval from the TSX Venture Exchange Inc.
The securities being issued in the private placement are all subject to a four-month hold period in accordance with applicable Canadian securities laws. The securities have not been registered under the U.S. Securities Act of 1933, as amended, or any state securities laws and, until so registered, may not be offered or sold in the United States or any state or to, or for the account of, U.S. persons absent registration or an applicable exemption from registration requirements. This release does not constitute an offer for sale of securities in the United States.
About Cynapsus Therapeutics
Cynapsus is a specialty clinical development pharmaceutical company targeting diseases of the brain. Cynapsus has a lower risk Parkinson's drug candidate ("APL-130277"), which is a reformulation of an approved drug. APL-130277 is designed to address a much larger moderate to severe patient population, which represents close to 50% of Parkinson's patients. Cynapsus also has a proprietary formulation technology for cannabinoid drug candidates, which may be used to treat neuropathic pain associated with multiple sclerosis and cancer, as well as for nausea/vomiting and appetite stimulation.
Cynapsus' strategy is to grow its portfolio of drug candidates through in-licensing and acquisitions, and to advance projects to Phase 2 proof-of-concept clinical studies. Once the drug candidates are sufficiently derisked, Cynapsus intends to out-license the programs to the appropriate pharmaceutical marketing partners for a combination of upfront, milestone, and royalty payments.
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 Cynapsus 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 Cynapsus' business disclosed under the heading "Risk Factors" in Cynapsus' current Annual Information Form and its other filings with the various Canadian securities regulators which are available online at www.sedar.com. Although Cynapsus 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. Cynapsus does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.
The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.