TORONTO, ONTARIO--(MARKET WIRE)--Aug 3, 2006 -- Cannasat Therapeutics Inc. (TSX VENTURE:CTH.V - News) (“Cannasat”) is pleased to announce that it has closed the non-brokered private placement (the “Private Placement”) of units (“Units”) previously announced on July 21, 2006.
Cannasat issued an aggregate of 3,815,000 Units at a price of C$0.20 per Unit raising gross proceeds of C$763,000. Each Unit consists of one common share and one-half of one share purchase warrant. Each whole share purchase warrant shall entitle the holder to acquire one common share at a price of $0.30 until August 3, 2008. The common shares issued under the Private Placement are subject to a hold period of four months expiring on December 4, 2006. A commission of 8% was paid in connection with subscribers for Units introduced through brokers.
The proceeds from the offering will be used to fund Cannasat’s ongoing research and development as well as working capital and general corporate activities.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved of the contents of this release.
ABOUT CANNASAT THERAPEUTICS INC.
Cannasat Therapeutics Inc. is researching the therapeutic benefits of cannabis and developing new cannabinoid pharmaceutical products. Cannasat is pursuing two complementary business strategies. The first consists of development of novel cannabinoid-based pharmaceutical products through application of drug delivery technologies to be introduced to the market through the traditional regulatory drug approval process. The second is to promote medicinal cannabis research and education with Cannasat’s business partner, Prairie Plant Systems Inc., the only government licensed grower and distributor of medicinal cannabis in Canada.
The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contact:
Contacts:
Cannasat Therapeutics Inc. Andrew Williams Vice President, Operations (416) 703-2449 (ext. 253) (416) 703-8752 (FAX) awilliams@cannasat.com http://www.cannasat.com
Source: Cannasat Therapeutics Inc.