Full Press Release Details
Essa Pharma Inc. Announces US$80 million
Cash Distribution to Shareholders
SOUTH SAN FRANCISCO, USA AND VANCOUVER,
CANADA, August 6, 2025 - 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.
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.
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