CanAsia Provides Update With Respect to the Acquisition of Global Neuro Technologies Inc. and Proposed Offering

CALGARY, ALBERTA--(Marketwired - Aug. 29, 2014) - CanAsia Financial Inc. ("CanAsia" or the "Company") (TSX VENTURE:CNA) announces that further to its press releases dated October 9, 2013 and February 10, 2014 whereby the Company announced it will acquire pursuant to an arm's length transaction all of the outstanding shares (the "Proposed Acquisition") of Global Neuro Technologies Inc., a private company registered in the British Virgin Islands ("GNTI"), it has entered into an amended letter of intent (the "Amended LOI") dated August 27, 2014 with GNTI. The parties have agreed that CanAsia will acquire all of the issued and outstanding shares of GNTI in exchange for 50,000,000 units of CanAsia (the "Units") at a deemed value of $1.00 per Unit for aggregate consideration of $50,000,000. The Units will be comprised of one (1) non-voting series D preferred share of CanAsia ("Preferred Share") and/or one common share of CanAsia ("Common Share") in a ratio to be determined by CanAsia acting reasonably in order to meet the listing requirements of the TSX Venture Exchange Inc. (the "TSXV"), and one-fifth (1/5) of one Common Share purchase warrant of CanAsia ("Warrant"). Subject to certain conditions, each Preferred Share may be converted by the holder thereof into one Common Share at no additional cost to the holder for a period of five (5) years from the date of issuance. Each whole Warrant entitles the holder thereof to purchase one Common Share for $1.00 per share expiring three (3) years from the date of issuance. Concurrently with the Proposed Acquisition, CanAsia will complete a consolidation of 40 existing Common Shares to one (1) new Common Share. The references to Common Shares in this press release are all on a post consolidated basis.

CanAsia paid to GNTI an initial deposit of $500,000 (the "Initial Deposit"). Pursuant to the Amended LOI, CanAsia has paid an additional deposit of $100,000 (the "Additional Deposit") with respect to the Proposed Acquisition. The Initial Deposit and Additional Deposit are collectively referred to herein as the "Deposit". The repayment of the Deposit has been guaranteed by the GNT Group (as defined herein). The Deposit will be fully refundable to CanAsia if: (a) the Proposed Acquisition cannot be completed on or before December 15, 2014, or such later date as the parties may agree for any reason; or (b) GNTI discontinues the Proposed Acquisition at any time. In order to provide the Additional Deposit, an executive officer and director and a shareholder of the Company have each agreed to advance the Company $50,000 (totalling $100,000) pursuant to loan agreements (the "Loans"). The Loans are unsecured, payable in six months from the date of the Loans, or upon completion or termination of the Proposed Acquisition, bear interest at 1% per month payable quarterly and are not convertible into Common Shares or other securities of CanAsia.