CannPal Release 4C Quarterly Cash Flow Report for March 2019 Quarter

KEY TAKEAWAYS:

• Completed further testing on inflammatory cytokines, neuro-transmitters and gut metabolites in blood samples taken from Phase 1 studies for CPAT-01
• Received ODC (Office of Drug Control) permits to import clinical trial material for CPAT-01 Phase 2A osteoarthritis study, with veterinary clinic recruitment underway
• Commenced protocol design for CPAT-01 Phase 2B Target Animal Safety (TAS) study
• Commenced recruitment of veterinary dermatology clinics to evaluate the safety
  and efficacy of DermaCann in dogs with atopic dermatitis and/or allergic dermatitis
• Successfully completed initial technology evaluation of CSIRO-patented micro-encapsulation technology, confirming applicability across CannPal’s oil formulations.

Animal health company CannPal Animal Therapeutics Limited (ASX:CP1) (“CannPal” or “the Company”) is pleased to update the market on its progress in the March 2019 quarter and attaches its Appendix 4C Quarterly Cash Flow report and market update for the period ending 31 March 2019.

Corporate Update

The Company had a cash balance of $4.09 million with operating cash outflows totalling $464,000 for the quarter, with $299,000 related to the costs associated with the research and development of the Company’s lead pharmaceutical and nutraceutical drug candidates, along with administration, staff and corporate costs.

CannPal remains well capitalised, providing the runway required to reach key milestones previously communicated to the market, including CannPal’s Phase 2A and B pilot studies for CPAT-01, and completing the development of DermaCann.

CSIRO Research Collaboration

During the quarter the company successfully completed its initial technology evaluation of CSIRO’s micro-encapsulation technology. CannPal and CSIRO are undertaking research into the use of CSIRO-patented technologies to enhance the delivery of hemp and cannabis derived compounds in animal health.

The Company has identified that CSIRO’s micro-encapsulation technology has applicability across CannPal’s proprietary oil formulations. Micro-encapsulation allows ingredients and oil formulations to be spray dried into a stable powder with high loading of active components and long shelf life at 25°C.

The technology performed well in the final evaluation at CSIRO’s food innovation centre in Werribee, and CannPal is working with CSIRO to scale up the micro-encapsulation process to explore commercial opportunities that may be available for applications in animal health.

During the quarter CannPal engaged Australian, HACCP and GMP accredited pet food manufacturer Next Generation Pet Foods, to provide support for the development of additional product formats incorporating CannPal’s micro-encapsulated oil formulations.

CannPal’s Chairman, Mr Geoff Starr:

“I’m very happy with Management’s continued momentum across the Company’s core dog programs, as we continue to manage resources, while completing robust research that we hope will set CannPal apart from our peers. We will continue to focus on progressing work that brings us closer to the commercialisation of our first animal health products.”

CannPal’s Founder and Managing Director, Layton Mills:

“We’ve made strong progress this quarter and remain fully funded to reach key milestones previously communicated to the market, including CannPal’s Phase 2A and B pilot studies for CPAT-01, and completing the development of DermaCann. Our vision is to be a global leader in the development of compliant and evidence based cannabinoid-derived therapeutics for companion animals, and our work continues to evidence our ability to reach that goal.”

About CannPal Animal Therapeutics

CannPal Animal Therapeutics Limited (ASX: CP1) is a pharmaceutical-focused animal health
Company researching the benefits of medical cannabis for companion animals.

CannPal is researching and developing medicines derived from cannabinoids to provide veterinarians with clinically validated and standardised therapeutics to treat animals in a safe and ethical way.

CannPal has identified a significant opportunity to benefit from the rapidly growing medical cannabis and health markets by developing innovative therapeutics derived from the cannabis plant. The Company is working closely with regulatory authorities and veterinary research organisations conducting clinical trials to commercialise therapeutic products that will meet regulatory approval and support the health and well-being of companion animals.