Cannasat Therapeutics Inc. Announces Signing of Letter of Intent for In-Licensing of Parkinson’s Disease Technology With Adagio Pharmaceuticals Ltd.

TORONTO, ONTARIO--(Marketwire - February 04, 2010) - Cannasat Therapeutics Inc. (TSX VENTURE: CTH), a specialty clinical development pharmaceutical company targeting CNS illness, announced today that it has entered into a Letter of Intent (“LOI”) with Adagio Pharmaceuticals Ltd. granting Cannasat the option to execute a proposed exclusive, worldwide agreement to license all intellectual property relating to APL-130277, a reformulation of an approved Parkinson’s drug.

The two parties are negotiating an exclusive worldwide license that would result in Cannasat assuming product development and commercialization rights to APL-130277 from Adagio in return for development milestones and royalties to Adagio, including common shares of Cannasat. The license agreement includes an exclusive option period for the first 12 months which allows Cannasat to conduct further due diligence and proof-of-concept studies for APL-130277 prior to executing the full license. All aspects of the option and license agreements are subject to Board approval.

APL-130277 is a novel oral formulation of an approved drug for Parkinson’s patients designed to deliver significant clinical benefits over the current marketed treatment. The drug will treat patients with moderate to severe PD and address a significant unmet clinical need as expressed by clinicians and patients. The drug is expected to undergo accelerated approval through 505(b)(2) FDA regulatory pathway with the US FDA and a similar pathway with other international regulatory agencies. This well developed regulatory path could result in a New Drug Approval application being submitted in late 2014 or early 2015. APL-130277 has the potential to address a significant underserved portion of $3 Billion+ Parkinson’s Disease market. The project fits well into Cannasat’s new drive to expand its CNS project portfolio and leverages Cannasat’s considerable experience in drug formulation and clinical development.

It should be noted that Anthony Giovinazzo, Cannasat’s President and CEO, is also a director, officer and shareholder of Adagio, a private holding company for the APL-130277 asset only. Steps have been taken to address any potential conflict of interest, including the engagement of independent third party business development consultants to assist in negotiations. The Board of Cannasat will review and approve the final agreement.

About Cannasat Therapeutics

Cannasat is a specialty clinical development pharmaceutical company targeting diseases of the brain. Cannasat has a proprietary formulation technology for cannabinoid drug candidates, which may be used to treat neuropathic pain associated with multiple sclerosis and cancer, as well as for nausea/vomiting and appetite stimulation. Cannasat’s 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, Cannasat intends to out-license the programs to the appropriate Pharma marketing partners for a combination of upfront, milestone, and royalty payments. More information about Cannasat (TSX VENTURE: CTH) is available at www.cannasat.com.

Forward Looking Statements

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