Essa Pharma (EPIX) Nosedives 66% Ahead of Business Shutdown

We recently published 10 Stocks Losing Big. ESSA Pharma Inc. (NASDAQ:EPIX) is one of the worst performers of Tuesday.

ESSA Pharma nosedived by 66.39 percent on Tuesday to end at $0.2631 apiece as investors sold off positions following the payment of $80 million to its shareholders as part of its business shutdown.

In a statement, ESSA Pharma Inc. (NASDAQ:EPIX) said it returned around $1.69 per share to shareholders as of August 22 record. It also corrected the ex-dividend date to August 22, instead of August 25 as it had earlier announced.

The transaction was in line with ESSA Pharma Inc.’s (NASDAQ:EPIX) planned merger with XenoTherapeutics, Inc., under which the latter will acquire all of its issued and outstanding shares.

Under the terms of the agreement, shareholders of ESSA Pharma Inc. (NASDAQ:EPIX) will receive a cash payment that will be determined based on its cash balance at closing after deducting certain transaction costs, a reserve for liabilities and legal expenses, and a transaction fee.

Additionally, each shareholder will receive one non-transferable contingent value right for each share, which will entitle the shareholder to receive a pro rata portion of up to $2.95 million or $0.06 per CVR within 18 months following the transaction.