Cynapsus Therapeutics Inc.
TSX VENTURE : CTH

Cynapsus Therapeutics Inc.

May 31, 2011 15:45 ET

Cynapsus Announces Results of Annual and Special Meeting of Shareholders

TORONTO, ONTARIO--(Marketwire - May 31, 2011) - Cynapsus Therapeutics Inc. (TSX VENTURE:CTH), a specialty pharmaceutical company developing an improved dosing formulation of an approved drug used to treat the symptoms of Parkinson's disease, today announced the results of its Annual and Special Meeting of Shareholders held earlier in the day, on May 31, 2011.

Of importance, and further to the press release of April 26, 2011, shareholders have approved the proposed acquisition of Adagio Pharmaceuticals Ltd. and the proposed share consolidation. These approvals are integral to the completion of the $10 million Private Placement updated and described in the press release of May 25, 2011.

Rochelle Stenzler, the Chairman of the Board, stated, "We are pleased in the confidence the shareholders of Cynapsus have shown in the Board and look forward to continuing to advance our Parkinson's drug candidate and de-risking it to the point where we can gain maximum value from a global pharmaceutical company or partner. We are also pleased that we now have a mandate from our shareholders to modernize our share capital structure."

Voting Matters

The shareholders approved all motions put forth at the meeting, with shareholders representing 41% of the issued and outstanding common shares (i.e. 41,356,499 of 100,263,219) voted in person or by proxy as follows:

Outcome of Vote
1.Approval, subject to the acceptance by the TSX Venture Exchange Inc., of the proposed acquisition of Adagio Pharmaceuticals, Ltd., on the terms set out in the Information Circular dated April 28, 2011. Passed (99% in support)
2.Approval, subject to the acceptance by the TSX Venture Exchange Inc., the consolidation of the issued and outstanding Common shares on the basis of 20:1, or on such other basis as may be deemed appropriate by the Board, and as more particularly set forth in the accompanying addendum to the Information Circular dated April 29, 2011. Passed (99% in support)
3.Election of the following nominees as Directors:
David Hill
Ronald Hosking
Julia Levy
Alan Ryley
Rochelle Stenzler
Alan Torrie
Passed
(99% in support)
4.Approval of the current stock option plan of the Corporation and the reservation for issuance of a "rolling" maximum number of 10% of the shares issuable under the stock option plan. Passed (84% in support)
5.Appointment of McGovern Hurley Cunningham LLP as the auditors of the Corporation for the ensuing year to serve at such remuneration as may be fixed by the Board of Directors. Passed
(99% in support)

About Cynapsus Therapeutics

Cynapsus is a specialty pharmaceutical company developing an improved dosing formulation of an approved drug used to treat the symptoms of Parkinson's disease. The prevalence of Parkinson's disease, a chronic and progressive neurodegenerative disease that impacts motor activity, is increasing with the aging of the population. Current medications only control the disease's symptoms; however, these treatments become less effective over time as the disease progresses. Between 25 percent and 50 percent of patients experience episodes in which they cannot move or talk. Cynapsus' lead drug candidate, APL-130277, is an easy-to-administer, fast-acting and oral reformulation of an approved drug, apomorphine, used to rescue patients from these episodes. Cynapsus is focused on rapidly maximizing the value of APL-130277 by advancing it to pivotal studies in advance of a New Drug Application expected to be completed by the end of 2013, followed by out-licensing to an appropriate pharmaceutical partner. More information about Cynapsus (CTH: TSX-V) is available at www.cynapsus.ca and at the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.

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.

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