ESSA Pharma to seek court approval for cash distribution to shareholders

SOUTH SAN FRANCISCO/VANCOUVER - ESSA Pharma Inc. (NASDAQ:EPIX), currently trading at $1.87 with a market capitalization of $83 million, announced today it will apply to the Supreme Court of British Columbia on August 5 for approval to make an initial cash distribution to shareholders before completing its previously announced acquisition by XenoTherapeutics.

The company is seeking court authorization to expedite cash payments to shareholders ahead of the transaction closing. With a strong financial position reflected in its exceptional current ratio of 67.17 and more cash than debt on its balance sheet, ESSA estimates shareholders will receive approximately $1.91 per share in total, combining the initial distribution and cash payable upon closing, exclusive of any contingent value rights payments. InvestingPro data shows the company maintains robust liquidity, with liquid assets significantly exceeding short-term obligations.

The court hearing will take place at 9:45 a.m. Pacific time at the Vancouver courthouse, where ESSA will seek both an interim order authorizing a special meeting to approve the transaction and an order permitting the early cash distribution.

ESSA plans to file its petition record on July 31, one business day before the hearing. Interested parties may file response materials by 1:00 p.m. Vancouver time on July 31 to be included in the petition record.

The announcement comes as part of ESSA’s business combination agreement with XenoTherapeutics, a non-profit biotechnology company, under which Xeno will acquire all issued and outstanding common shares of ESSA.

The transaction remains subject to shareholder, regulatory and court approvals, along with satisfaction of other closing conditions.

ESSA Pharma was previously focused on developing therapies for prostate cancer treatment. According to InvestingPro analysis, the stock appears slightly undervalued at current levels. The company’s announcement was made through a press release statement. Discover more valuable insights and 7 additional ProTips for ESSA Pharma with an InvestingPro subscription.

In other recent news, ESSA Pharma Inc. announced it will be acquired by XenoTherapeutics, Inc. in an all-cash deal. The agreement outlines that ESSA shareholders will receive approximately $1.91 per share in cash. Additionally, shareholders will obtain a non-transferable contingent value right (CVR) per share, which could potentially offer up to an extra $0.06 within 18 months after the transaction closes. Financing for this acquisition is being provided by XOMA Royalty Corporation. These developments mark a significant change for ESSA Pharma, aligning with current trends in the biotechnology sector. The transaction details reflect a strategic move aimed at enhancing shareholder value. This acquisition is part of broader industry trends involving mergers and acquisitions. Investors will be closely monitoring the outcomes of this deal in the coming months.

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