Cannasat Therapeutics reports net loss of $336,154 for the three months ended September 30, 2009

Nov 27 2009

Cannasat Therapeutics Inc. (TSX VENTURE:CTH), a clinical stage pharmaceutical company developing products to treat neurological disorders, today announced its results for the nine months ended September 30, 2009. Unless specified otherwise, all amounts are in Canadian dollars.

Financial Highlights

• On August 6, 2009, announced the closing of a first tranche of its previously announced short form prospectus offering of units raising gross proceeds of $750,950.

• On August 31, 2009, announced the closing of a second tranche of its previously announced short form prospectus offering of units raising gross proceeds of $178,900.

• Cash and cash equivalents at September 30, 2009 of $811,080 (December 31, 2008: $805,128).

• Net loss of $336,154 for the three months ended September 30, 2009 (September 30, 2008: $556,919).

• Report 87,812,349 common shares outstanding at September 30, 2009.

Operational Highlights

• During Q3 2009, Management suspended all research and development activities while the Corporation sought to raise additional capital. While the Corporation successfully raised gross proceeds of $928,950 in August 2009, Management continues to actively seek additional capital from private and institutional investors.

• Subsequent to the quarter end, on November 16, 2009, announced that Anthony J. Giovinazzo has been appointed to succeed David Hill as Chief Executive Officer, and joins the Company as President and Chief Executive Officer. Mr. Giovinazzo is an executive with 31 years of international business experience, of which the last 16 years were in drug development for treatment of central nervous system diseases. Mr. Hill will continue with the company as Vice Chairman and will become an advisor to Mr. Giovinazzo. Further to the Corporation's press release dated November 16, 2009, the Corporation granted Mr. Giovinazzo stock options to acquire 500,000 shares in the capital of the Corporation. The exercise price of the stock options granted to Mr. Giovinazzo has been amended from $0.09 to $0.10. The stock options will expire 5 years from the date of grant.

"I am encouraged that our team was able to raise additional capital in the third quarter of 2009," stated Anthony Giovinazzo, Cannasat's new President and Chief Executive Officer. "This was no small achievement in a challenging economic environment. I look forward to 2010 as we seek to execute on our strategy to grow our portfolio of CNS drug candidates through in-licensing and acquisitions. I believe this approach should allow us to raise additional capital to reach meaningful milestones, and, importantly, add substantial value to Cannasat and its shareholders."