Six-month period financial results released by Cannasat Therapeutics

Cannasat TherapeuticsSep 1 2009

Cannasat Therapeutics Reports Results for the Six Months Ended June 30, 2009

Cannasat Therapeutics Inc. (TSXV: CTH), a clinical stage pharmaceutical company developing products to treat neurological disorders such as neuropathic pain and schizophrenia, today announced its results for the six months ended June 30, 2009. Unless specified otherwise, all amounts are in Canadian dollars.

Operational Highlights

* During Q2 2009, announced the completion of a Phase 1(b) clinical trial for Relivar, a potential treatment for patients with neuropathic pain and other conditions.

* During Q2 2009, continued early stage formulation development work on Modulyn, a potential treatment for schizophrenia, anxiety and other mood disorders.

* On May 15, 2009, announced the appointment of Dr. Nathan Bryson as Chief Scientific Officer.

* On May 25, 2009, announced that the United States Patent and Trademark Office has issued a Notice of Allowance for a U.S. Patent Application, which forms the basis for Cannasat's lead product, Relivar. The Corporation is the exclusive licensee of the patent application.

* On June 10, 2009, announced the filing of a final short form prospectus in each of the provinces of British Columbia, Alberta and Ontario for its previously announced offering of units. The Prospectus qualified the distribution of a minimum of 7,500,000 and a maximum of 25,000,000 units at a price of $0.10 per Unit. Each Unit consists of one common share and one common share purchase warrant. Each Warrant shall entitle the holder to purchase one additional common share of the Corporation at a price of $0.15 for a period of two years following the date of closing of the Offering.

Financial Highlights

* Cash and cash equivalents at June 30, 2009 of $287,170 (December 31, 2008: 805,128).

* Net loss of $409,959 for the three months ended June 30, 2009 (June 30, 2008: $372,956), in line with expectation.

* Report 78,513,849 common shares outstanding at June 30, 2009.

* Subsequent to the end of the second quarter, the company announced the closing of the first and second tranches of its short form prospectus offering of units, raising aggregate gross proceeds of $929,850.

"The second quarter was highlighted by the announcement of the favourable USPTO ruling which forms the basis for our lead product, Relivar, as well as the successful completion of our Phase 1(b) clinical trial for Relivar. The patent ruling and the positive results of this study represent key milestones for our company, and formed the basis of our short form prospectus offering led by Sandfire Securities," said David Hill, Chief Executive Officer of Cannasat. "We look forward to the second half of 2009, as we continue to advance our innovative and promising drug candidates."

Effective today, the Corporation granted stock options to acquire 1,550,000 shares in the capital of the Corporation. The stock options will be granted to directors, officers and an employee at an exercise price equal to $0.10 per share and with an expiry of 5 years. In particular, 300,000 stock options will be granted to Nathan Bryson (CSO), 250,000 to Rochelle Stenzler (Director), 200,000 to David Hill (CEO), 100,000 to each of Andrew Williams (COO/CFO), Dr. Julia Levy (Director), Peter Palframan (Director), Dr. David Pattenden (Director), Dr. Alan Ryley (Director), Alan Torrie (Director) and Donald Ziraldo (Director).

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