ESSA Pharma Inc. Announces Definitive Agreement to be Acquired by XenoTherapeutics, Inc., Backed by XOMA Royalty Corporation in All-Cash Transaction
ESSA Pharma (NASDAQ: EPIX) has announced a definitive agreement to be acquired by XenoTherapeutics, with financing from XOMA Royalty Corporation (NASDAQ: XOMA). The all-cash transaction will provide EPIX shareholders with approximately $1.91 per common share, plus one non-transferable contingent value right (CVR) worth up to $0.06 per share payable within 18 months post-closing.
The transaction, expected to close in second half of 2025, requires approval from 66⅔% of ESSA shareholders and securityholders. The agreement includes a $2.5 million termination fee and customary deal-protection provisions. ESSA's board unanimously approved the transaction, with directors and senior officers, holding 2.23% of shares, agreeing to vote in favor.
[ "All-cash transaction providing immediate liquidity to shareholders", "Additional potential value through CVR of up to $0.06 per share", "Expedited cash distribution process compared to standard liquidation", "Unanimous board approval and management support with 2.23% commitment" ]ESSA Pharma (NASDAQ: EPIX) ha annunciato un accordo definitivo per essere acquisita da XenoTherapeutics, con il finanziamento di XOMA Royalty Corporation (NASDAQ: XOMA). L'operazione in contanti offrirà agli azionisti di EPIX circa 1,91 $ per azione ordinaria, oltre a un diritto di valore contingente non trasferibile (CVR) del valore massimo di 0,06 $ per azione, pagabile entro 18 mesi dalla chiusura.
La transazione, prevista per la seconda metà del 2025, richiede l'approvazione del 66⅔% degli azionisti e titolari di titoli di ESSA. L'accordo prevede una penale di risoluzione di 2,5 milioni di dollari e clausole consuete di protezione dell'accordo. Il consiglio di amministrazione di ESSA ha approvato all'unanimità la transazione, con i direttori e i dirigenti senior, detentori del 2,23% delle azioni, che hanno confermato il loro voto favorevole.
- Operazione interamente in contanti che garantisce liquidità immediata agli azionisti
- Valore aggiuntivo potenziale tramite CVR fino a 0,06 $ per azione
- Processo di distribuzione del denaro più rapido rispetto a una liquidazione standard
- Approvazione unanime del consiglio e supporto del management con impegno del 2,23%
ESSA Pharma (NASDAQ: EPIX) ha anunciado un acuerdo definitivo para ser adquirida por XenoTherapeutics, con financiamiento de XOMA Royalty Corporation (NASDAQ: XOMA). La transacción en efectivo ofrecerá a los accionistas de EPIX aproximadamente $1.91 por acción común, más un derecho contingente de valor no transferible (CVR) por hasta $0.06 por acción, pagadero dentro de los 18 meses posteriores al cierre.
Se espera que la transacción, que se cerrará en la segunda mitad de 2025, requiera la aprobación del 66⅔% de los accionistas y tenedores de valores de ESSA. El acuerdo incluye una tarifa de terminación de $2.5 millones y disposiciones habituales de protección del acuerdo. La junta directiva de ESSA aprobó la transacción por unanimidad, con directores y altos ejecutivos, que poseen el 2.23% de las acciones, comprometidos a votar a favor.
- Transacción en efectivo que proporciona liquidez inmediata a los accionistas
- Valor potencial adicional a través del CVR de hasta $0.06 por acción
- Proceso acelerado de distribución de efectivo en comparación con una liquidación estándar
- Aprobación unánime del consejo y apoyo de la gerencia con un compromiso del 2.23%
ESSA Pharma (NASDAQ: EPIX)는 XenoTherapeutics에 인수되는 최종 계약을 발표했으며, XOMA Royalty Corporation (NASDAQ: XOMA)의 자금 지원을 받습니다. 이 현금 거래는 EPIX 주주들에게 주당 약 1.91달러와, 양도 불가능한 조건부 가치 권리(CVR) 1개를 제공하며, 이는 최대 주당 0.06달러까지 18개월 이내에 지급됩니다.
이 거래는 2025년 하반기 완료될 예정이며, ESSA 주주 및 증권 보유자의 66⅔% 승인이 필요합니다. 계약에는 250만 달러의 해지 수수료와 일반적인 거래 보호 조항이 포함되어 있습니다. ESSA 이사회는 만장일치로 거래를 승인했으며, 2.23%의 주식을 보유한 이사 및 고위 임원들이 찬성 투표에 동의했습니다.
- 주주들에게 즉각적인 유동성을 제공하는 전액 현금 거래
- 주당 최대 0.06달러의 CVR을 통한 추가 잠재 가치
- 표준 청산보다 신속한 현금 분배 절차
- 만장일치 이사회 승인 및 2.23% 지분을 가진 경영진의 지지
ESSA Pharma (NASDAQ: EPIX) a annoncé un accord définitif pour être acquise par XenoTherapeutics, avec un financement de XOMA Royalty Corporation (NASDAQ: XOMA). La transaction entièrement en numéraire offrira aux actionnaires d'EPIX environ 1,91 $ par action ordinaire, ainsi qu'un droit de valeur conditionnel non transférable (CVR) d'une valeur maximale de 0,06 $ par action, payable dans les 18 mois suivant la clôture.
La transaction, dont la clôture est prévue pour la seconde moitié de 2025, nécessite l'approbation des 66⅔ % des actionnaires et détenteurs de titres d'ESSA. L'accord inclut des frais de résiliation de 2,5 millions de dollars et des dispositions habituelles de protection de l'accord. Le conseil d'administration d'ESSA a approuvé la transaction à l'unanimité, les administrateurs et cadres supérieurs détenant 2,23 % des actions s'étant engagés à voter en faveur.
- Transaction entièrement en numéraire offrant une liquidité immédiate aux actionnaires
- Valeur potentielle supplémentaire via un CVR allant jusqu'à 0,06 $ par action
- Processus de distribution rapide des liquidités comparé à une liquidation standard
- Approbation unanime du conseil et soutien de la direction avec un engagement de 2,23 %
ESSA Pharma (NASDAQ: EPIX) hat eine endgültige Vereinbarung zur Übernahme durch XenoTherapeutics bekannt gegeben, finanziert durch XOMA Royalty Corporation (NASDAQ: XOMA). Die Transaktion in bar bietet EPIX-Aktionären etwa 1,91 $ pro Stammaktie sowie ein nicht übertragbares bedingtes Wertrecht (CVR) im Wert von bis zu 0,06 $ pro Aktie, zahlbar innerhalb von 18 Monaten nach Abschluss.
Die Transaktion, deren Abschluss für die Zweite Hälfte 2025 erwartet wird, erfordert die Zustimmung von 66⅔% der ESSA-Aktionäre und Wertpapierinhaber. Die Vereinbarung beinhaltet eine Abbruchgebühr von 2,5 Millionen US-Dollar sowie übliche Schutzbestimmungen. Der Vorstand von ESSA hat die Transaktion einstimmig genehmigt, wobei Direktoren und leitende Angestellte, die 2,23 % der Aktien halten, zugestimmt haben, dafür zu stimmen.
- Bartransaktion, die den Aktionären sofortige Liquidität bietet
- Zusätzlicher potenzieller Wert durch CVR von bis zu 0,06 $ pro Aktie
- Beschleunigter Barverteilungsprozess im Vergleich zu einer regulären Liquidation
- Einstimmige Vorstandszustimmung und Managementunterstützung mit 2,23 % Engagement
- None.
- Company will discontinue operations and wind down business
- Transaction subject to multiple approval requirements and customary closing conditions
- $2.5 million termination fee if deal fails under certain circumstances
Insights
ESSA's acquisition represents a controlled exit strategy, delivering estimated $1.91 per share plus potential CVR payments to shareholders amid business wind-down.
This transaction represents a structured wind-down of ESSA Pharma, allowing shareholders to receive cash distributions more efficiently than through a traditional liquidation process. The deal provides
The transaction structure is particularly notable. Rather than continuing operations or seeking strategic alternatives to advance their pipeline, ESSA is explicitly proceeding with plans to discontinue operations and wind down its business. This confirms the company had reached a strategic dead-end, with leadership determining that returning capital to shareholders represented the best remaining option.
The deal includes several shareholder-friendly elements: an expedited initial cash distribution prior to closing (pending court approval), and CVRs that could deliver up to
While typical M&A transactions involve operational synergies or strategic pipeline additions, this deal appears focused solely on efficiently returning capital to shareholders through a controlled process that minimizes transaction costs and risks compared to a formal liquidation. The unanimous board approval and comprehensive protections (including a
Under the terms of the Business Combination Agreement, ESSA shareholders will receive a cash payment per Common Share that will be determined based upon ESSA's cash balance at closing after deducting certain transaction costs, a reserve for liabilities and legal expenses, and a transaction fee (the "Final Cash Amount"). In addition, each ESSA shareholder will also receive one non-transferable contingent value right (each, a "CVR") for each Common Share that entitles the holder to receive a pro rata portion of up to
To expedite the distribution of cash to ESSA shareholders, ESSA will also apply to the Supreme Court of
"After conducting a comprehensive review of the opportunities available to ESSA and considering the communications received from our shareholders, the ESSA Board of Directors has unanimously concluded that entering into this agreement with Xeno and XOMA Royalty is in the best interest of the Company and maximizes value for our shareholders as the Company proceeds with its plans to discontinue operations and wind-down its business," said David Parkinson, M.D., President and CEO of ESSA. "This Transaction delivers cash value to shareholders in an expedited timeframe, with less complexity and value risk when compared to a liquidation, and thus delivers more certain value to shareholders."
Transaction Details
The Transaction will be implemented by way of a court-approved plan of arrangement under the Business Corporations Act (
The Business Combination Agreement provides for customary deal-protection provisions, including a non-solicitation covenant on the part of the Company and a right for Xeno to match any Superior Proposal (each as defined in the Business Combination Agreement). The Business Combination Agreement includes a termination fee of
ESSA Board of Directors and Transaction Committee Recommendations
A transaction committee composed entirely of independent directors of the Company (the "Transaction Committee") unanimously recommended entering into the Business Combination Agreement to the board of directors of ESSA (the "Board"). The Board has evaluated the Business Combination Agreement with the Company's management, legal and financial advisors and, following the receipt and review of the unanimous recommendation from the Transaction Committee and the opinion of the Transaction Committee's financial advisors, the Board has unanimously approved the Transaction and determined that the Transaction is in the best interest of the Company. The Board has resolved to recommend that the Company's securityholders vote in favor of the Transaction, subject to the terms and conditions contained in the Business Combination Agreement.
Advisors
Leerink Partners is serving as the exclusive financial advisor to ESSA and Blake, Cassels & Graydon LLP and Skadden, Arps, Slate, Meagher & Flom LLP are serving as ESSA's Canadian legal counsel and
Stikeman Elliott LLP and Gibson, Dunn & Crutcher LLP are serving as XOMA Royalty's Canadian legal counsel and
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.
About XenoTherapeutics, Inc.
XenoTherapeutics Inc. is a
About XOMA Royalty Corporation
XOMA Royalty is a biotechnology royalty aggregator playing a distinctive role in helping biotech companies achieve their goal of improving human health. XOMA Royalty acquires the potential future economics associated with pre-commercial and commercial therapeutic candidates that have been licensed to pharmaceutical or biotechnology companies. When XOMA Royalty acquires the future economics, the seller receives non-dilutive, non-recourse funding they can use to advance their internal drug candidate(s) or for general corporate purposes. The Company has an extensive and growing portfolio of assets (asset defined as the right to receive potential future economics associated with the advancement of an underlying therapeutic candidate). For more information about the Company and its portfolio, please visit www.xoma.com or follow XOMA Royalty Corporation on LinkedIn.
Forward Looking Statements
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
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) potential litigation relating to the Transaction that could be instituted by or against ESSA, Xeno, XOMA Royalty or their respective directors or officers, including the effects of any outcomes related thereto; (iii) the risk that disruptions from the Transaction will harm ESSA's business, including current plans and operations; (iv) the ability of ESSA to retain and hire key personnel; (v) potential adverse reactions or changes to business relationships resulting from the announcement or completion of the Transaction; (vi) continued availability of capital and financing and rating agency actions; (vii) legislative, regulatory and economic developments affecting ESSA's business; (viii) the accuracy of ESSA's financial projections; (ix) general business, market and economic conditions; (x) certain restrictions during the pendency of the Transaction that may impact ESSA's ability to pursue certain business opportunities or strategic transactions; (xi) 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; (xii) significant transaction costs associated with the Transaction; (xiii) the possibility that the Transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (xiv) competitive responses to the Transaction; (xv) 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 (xvi) the risks and uncertainties that will be described in the proxy statement and management information circular for the Company's securityholders filed with the
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
Important Additional Information and Where to Find It
In connection with the proposed Transaction between ESSA, Xeno and XOMA Royalty, ESSA will file with the SEC the Proxy Statement, the definitive version of which will be 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. 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 (when it is available) and other documents that are filed or will be filed with the SEC by ESSA through the website maintained by the SEC at www.sec.gov, on SEDAR+ at www.sedarplus.ca, 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 the identity of the participants, including a description of their direct or indirect interests, by security holdings or otherwise, will be set forth in the proxy statement and other materials to be filed with the SEC in connection with the proposed Transaction (if and when they become available). 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 (or the identity of such participants) have changed since the information printed in the Annual Meeting 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
XenoTherapeutics Contact Information:
Jon Adkins
President & Co-Founder, Xeno Therapeutics Foundation
jon.adkins@xenofoundation.org
XOMA Royalty Investor Contact
Juliane Snowden
XOMA Royalty Corporation
+1 646-438-9754
juliane.snowden@xoma.com
XOMA Royalty Media Contact
Kathy Vincent
KV Consulting & Management
kathy@kathyvincent.com
View original content:SOURCE ESSA Pharma Inc
FAQ
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