TORONTO, ONTARIO--(Marketwire - Feb. 3, 2011) - Cynapsus Therapeutics Inc. (TSX VENTURE:CTH) ("Cynapsus") is pleased to announce that it has closed a non-brokered private placement (the "Private Placement") of units ("Units") effective February 2, 2011.
Cynapsus issued an aggregate of 5,800,000 Units at a price of $0.05 per Unit raising gross proceeds of $290,000. 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 $0.10 for a period ending 24 months from the closing date.
The common shares issued under the Private Placement are subject to a hold period of four months expiring on June 1, 2011.
The Corporation will use the proceeds private placement for working capital, to fund ongoing research and development activities and current liabilities.
About Cynapsus Therapeutics
Cynapsus is a specialty clinical development pharmaceutical company targeting diseases of the brain. Cynapsus' lead drug candidate, APL-130277, is a reformulation of an approved drug for the treatment of motor fluctuation in Parkinson's disease. APL-130277 is designed to be a convenient, fast-acting rescue of patients experiencing motor fluctuations from "off" episodes during the day. The reformulation could address a much larger moderate to severe patient population, which represents approximately 25% to 50% of Parkinson's patients.
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.
More information about Cynapsus (TSX VENTURE:CTH) is available at www.cynapsus.ca.
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.
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