(RTTNews) - ESSA Pharma (EPIX) has entered into a definitive agreement with XenoTherapeutics, a non-profit biotechnology company, under which Xeno will acquire all of the issued and outstanding common shares of ESSA. XOMA Royalty (XOMA) said it is acting as the structuring agent and will provide financing to Xeno for the acquisition.
ESSA shareholders will receive a cash payment per share that will be determined based upon ESSA's cash balance at closing. Also, each ESSA shareholder will also receive one non-transferable contingent value right or CVR for each share that entitles the holder to receive a pro rata portion of up to $0.06 per CVR within 18 months following the close of the transaction.
ESSA will also apply to the Supreme Court of British Columbia for an order authorizing it to make an initial cash distribution to ESSA shareholders prior to the closing of the transaction. In total, with the initial cash distribution, and the cash payable upon closing of the transaction, each ESSA shareholder is currently estimated to receive approximately $1.91 per share, exclusive of any payments received pursuant to the CVR.
Shares of ESSA Pharma are up 9% in pre-market trade on Monday.
For More Such Health News, visit rttnews.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
