Pilgrim Global buys Sable Offshore (SOC) shares worth $14.7m
Investing.com -- ESSA Pharma announced revised terms for its merger with XenoTherapeutics, significantly reducing the expected payout to shareholders at closing to approximately $0.12 per share, down from the previous estimate of $1.91 per share.
The company’s shares fell 17% in premarket trading following the announcement.
ESSA Pharma had already distributed $1.69 per share to shareholders on August 22. Under the amended agreement, each share will also receive one contingent value right worth up to $0.14, or $6.7 million in total, depending on certain outcomes.
XOMA Royalty remains the structuring agent for the transaction and intends to continue financing the deal. The revision comes as ESSA addresses potential liabilities and updates its cash estimates.
The company will file the amended agreement on Form 8-K, and has adjourned its Special Meeting to October 3 to allow shareholders time to review the revised terms.
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