ESSA Pharma (NASDAQ:EPIX) has revised the terms of its merger with XenoTherapeutics, sharply reducing the anticipated payout to shareholders at closing to around $0.12 per share, down from the prior estimate of $1.91 per share.
Following the announcement, ESSA Pharma’s stock dropped 17% in premarket trading.
The company had already distributed $1.69 per share to investors on August 22. Under the updated agreement, each share will also receive one contingent value right valued at up to $0.14, totaling approximately $6.7 million, depending on specific outcomes.
XOMA Royalty continues to serve as the structuring agent for the deal and intends to maintain financing support for the transaction. The adjustments reflect ESSA’s efforts to address potential liabilities and revise its cash projections.
The company plans to file the amended agreement on Form 8-K and has postponed its Special Meeting to October 3, giving shareholders additional time to evaluate the new terms.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.