Essa Pharma Inc. Announces US$80 Million Cash Distribution to Shareholders

Rhea-AI Summary

ESSA Pharma (NASDAQ: EPIX) has announced a significant US$80 million cash distribution to shareholders as part of its business wind-down process. The distribution is scheduled for August 22, 2025, with a record date of August 19, 2025.

This distribution precedes EPIX's pending transaction with XenoTherapeutics, a non-profit biotech company, which will acquire all outstanding common shares. The special meeting for this transaction is set for September 10, 2025. Shareholders are expected to receive approximately US$1.91 per share in total, combining the distribution and transaction proceeds, excluding potential contingent value rights payments.

Positive

• Immediate return of US$80 million in capital to shareholders
• Total expected return of US$1.91 per share
• Additional potential value through contingent value rights payments

Negative

• Company is discontinuing and winding up its business operations
• Loss of ongoing business potential as company will be acquired by a non-profit entity

Insights

Corporate Finance Specialist

ESSA Pharma's $80M distribution and XenoTherapeutics acquisition signals complete business wind-down, returning approximately $1.91 per share to investors.

ESSA Pharma is executing a structured discontinuation of its operations with a significant $80 million capital return to shareholders scheduled for August 22, 2025. This distribution, approved by the Supreme Court of British Columbia, represents a substantial portion of the company's remaining capital being returned directly to shareholders before the business is fully wound down.

The timing is strategically positioned ahead of the September 10 special meeting where shareholders will vote on the previously announced acquisition by XenoTherapeutics, a non-profit biotechnology organization. The court has already granted interim approval for this special meeting, indicating the process is advancing as planned.

When combining both the $80 million distribution and the cash consideration from the XenoTherapeutics transaction, shareholders are expected to receive approximately $1.91 per share, exclusive of any additional contingent value rights payments that may materialize later. This structured approach to business discontinuation allows ESSA to systematically distribute its remaining assets to shareholders while facilitating an orderly transition of any remaining valuable assets to XenoTherapeutics.

The company's methodical approach to winding down operations—securing court approval, announcing precise distribution dates, and scheduling the acquisition vote—demonstrates a well-orchestrated exit strategy designed to maximize remaining shareholder value from a business that has decided to discontinue operations. This represents a final monetization event for ESSA shareholders, with the possibility of additional value through the contingent rights mechanism depending on future developments of any transferred assets.

SOUTH SAN FRANCISCO, Calif and VANCOUVER, Canada, Aug. 6, 2025 /PRNewswire/ -- ESSA Pharma Inc. ("ESSA," or the "Company") (NASDAQ: EPIX) today announced that, following the Company's receipt of an order from the Supreme Court of British Columbia (the "Court") on August 5, 2025, authorizing a reduction in the capital of the common shares of the Company (the "Common Shares" and the holders of such Common Shares, the "Shareholders") and concurrent distribution to the Shareholders, the board of directors of the Company (the "Board") has approved a return of capital distribution in the aggregate amount of US$80,000,000 (the "Distribution") to the Shareholders as part of the discontinuance and winding-up of the business of the Company.

The Distribution is scheduled to be paid on August 22, 2025, to Shareholders of record as of the close of business on August 19, 2025.

The Distribution will occur prior to the special meeting of the Company's Shareholders, optionholders and warrantholders that is being held to consider and approve the Company's previously announced transaction with XenoTherapeutics, Inc. ("Xeno"), a non-profit biotechnology company, under which Xeno will acquire all of the issued and outstanding Common Shares (the "Transaction"), which meeting is expected to be held on September 10, 2025 (the "Special Meeting"). On August 5, 2025, the Company obtained an interim order from the Court authorizing the Special Meeting.

In total, with the Distribution and the cash payable upon closing of the Transaction, each Shareholder is currently estimated to receive approximately US$1.91 per Common Share, exclusive of any contingent value rights payments Shareholders are entitled to receive pursuant to the Transaction.

About ESSA Pharma Inc.

ESSA is a pharmaceutical company that was previously focused on developing novel and proprietary therapies for the treatment of patients with prostate cancer. For more information, please visit www.essapharma.com.

Forward Looking Statement

This communication, and any related oral statements, contains certain information which, as presented, constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements"). Forward-looking statements include, but are not limited to, statements that relate to future events and often address expected future business and financial performance, containing words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions and include, but are not limited to, statements regarding the proposed timing and completion of the Transaction, the amounts payable under the Transaction; the Company's application to the Supreme Court of British Columbia for a reduction of capital and cash distribution prior to the closing of the Transaction; the timing and receipt of securityholder, regulatory and court approvals of the Transaction; the satisfaction of the conditions to the completion of the Transaction and other statements that are not statements of historical facts.

In this communication, these forward-looking statements are based on ESSA's current expectations, estimates and projections regarding, among other things, the expected date of closing of the Transaction and the potential benefits thereof, its business and industry, management's beliefs and certain assumptions made by ESSA, all of which are subject to change. Forward-looking statements are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of ESSA to control or predict, and which may cause ESSA's actual results, performance or achievements to be materially different from those expressed or implied thereby, including the consummation of the Transaction and the anticipated benefits thereof. Such statements reflect ESSA's current views with respect to future events, are subject to risks and uncertainties and are necessarily based upon a number of estimates and assumptions that, while considered reasonable by ESSA as of the date of such statements, are inherently subject to significant medical, scientific, business, economic, competitive, regulatory, political and social uncertainties and contingencies. In making forward-looking statements, ESSA may make various material assumptions, including but not limited to (i) the completion of the Transaction on anticipated terms and timing, including obtaining required securityholder, regulatory and court approvals, and the satisfaction of other conditions to the completion of the Transaction; (ii) the potential for the date of the Special Meeting to change; (iii) potential litigation relating to the Transaction that could be instituted by or against ESSA, Xeno, XOMA Royalty Corporation or their respective directors or officers, including the effects of any outcomes related thereto; (iv) the risk that disruptions from the Transaction will harm ESSA's business, including current plans and operations; (v) the ability of ESSA to retain and hire key personnel; (vi) potential adverse reactions or changes to business relationships resulting from the announcement or completion of the Transaction; (vii) continued availability of capital and financing and rating agency actions; (viii) legislative, regulatory and economic developments affecting ESSA's business; (ix) the accuracy of ESSA's financial projections; (x) general business, market and economic conditions; (xi) certain restrictions during the pendency of the Transaction that may impact ESSA's ability to pursue certain business opportunities or strategic transactions; (xii) unpredictability and severity of catastrophic events, including but not limited to acts of terrorism, pandemics, outbreaks of war or hostilities, as well as ESSA's response to any of the aforementioned factors; (xiii) significant transaction costs associated with the Transaction; (xiv) the possibility that the Transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (xv) competitive responses to the Transaction; (xvi) the risks and uncertainties pertaining to ESSA's business, including those set forth in ESSA's Annual Report on Form 10-K dated December 17, 2024, under the heading "Risk Factors", a copy of which is available on ESSA's profile on EDGAR at www.sec.gov and on SEDAR+ at www.sedarplus.ca, and as otherwise disclosed from time to time on ESSA's EDGAR and SEDAR+ profiles; and (xvii) the risks and uncertainties that will be described in the proxy statement and management information circular for the Company's securityholders filed with the U.S. Securities and Exchange Commission (the "SEC," and such statement, the "Proxy Statement") available from the sources indicated above.

These risks, as well as other risks associated with the Transaction, will be more fully discussed in the Proxy Statement. While the list of factors presented here is, and the list of factors to be presented in the Proxy Statement will be, considered representative, no such list should be considered a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material impact on ESSA's financial condition, results of operations, credit rating or liquidity. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and ESSA undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as may be required by applicable United States and Canadian securities laws. Readers are cautioned against attributing undue certainty to forward-looking statements.

Important Additional Information and Where to Find It

In connection with the proposed Transaction between ESSA, Xeno and XOMA Royalty Corporation, ESSA has filed with the SEC the preliminary Proxy Statement on July 31, 2025, the definitive version of which will be filed with the SEC and sent or provided to ESSA securityholders. ESSA may also file other documents with the SEC regarding the proposed Transaction. This document is not a substitute for the Proxy Statement or any other document which ESSA may file with the SEC or send or provide to ESSA securityholders in connection with the Transaction. INVESTORS AND SECURITYHOLDERS ARE URGED TO READ THE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND RELATED MATTERS. Investors and securityholders may obtain free copies of the Proxy Statement and other documents that are filed or will be filed with the SEC by ESSA (when they become available) through the website maintained by the SEC at www.sec.gov, on SEDAR+ at www.sedarplus.ca, or at ESSA's website at www.essapharma.com.

Participants in the Solicitation

ESSA and certain of its directors and executive officers may be deemed to be participants in the solicitation of proxies from ESSA's shareholders in connection with the proposed Transaction. Additional information regarding such participants, including a description of their direct or indirect interests, by security holdings or otherwise, can be found under the captions "THE ARRANGEMENT – Interests of the Company's Directors and Executive Officers in the Arrangement", "IMPORTANT INFORMATION ABOUT THE COMPANY – Security Ownership" and "INTERESTS OF THE COMPANY'S DIRECTORS AND EXECUTIVE OFFICERS IN THE ARRANGEMENT" contained in the preliminary Proxy Statement filed with the SEC on July 31, 2025. Information relating to the foregoing can also be found in ESSA's proxy statement for its 2025 annual meeting of shareholders, which was filed with the SEC on January 22, 2025 (the "Annual Meeting Proxy Statement"). To the extent holdings of securities by potential participants changed since the applicable "as of" date disclosed in the preliminary Proxy Statement, such information has been or will be reflected on ESSA's Statements of Change in Ownership on Forms 3 and 4 filed with the SEC. You may obtain free copies of these documents using the sources indicated above.

ESSA Contact Information:

David Wood
Chief Financial Officer, ESSA Pharma Inc.
T: 778-331-0962
E: dwood@essapharma.com

or 

Nick Lamplough / Dan Moore
ESSA-CS@collectedstrategies.com

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SOURCE ESSA Pharma Inc.

FAQ

How much is ESSA Pharma (EPIX) distributing to shareholders in August 2025?

ESSA Pharma is distributing US$80 million to shareholders, payable on August 22, 2025, to shareholders of record as of August 19, 2025.

What is the total amount EPIX shareholders will receive per share?

EPIX shareholders are estimated to receive approximately US$1.91 per share in total, combining the distribution and transaction proceeds, excluding potential contingent value rights payments.

When is ESSA Pharma's special meeting for the XenoTherapeutics acquisition?

The special meeting is scheduled for September 10, 2025, where shareholders, optionholders, and warrantholders will vote on the XenoTherapeutics transaction.

Who is acquiring ESSA Pharma (EPIX)?

XenoTherapeutics, Inc., a non-profit biotechnology company, will acquire all of ESSA Pharma's issued and outstanding Common Shares.

What is the record date for EPIX's US$80 million distribution?

The record date for the distribution is August 19, 2025, with payment scheduled for August 22, 2025.