Final Distribution Marks Essa Pharma’s Corporate Dissolution

Essa Pharma Inc. has initiated the final phase of its corporate wind-down, completing the previously announced transaction with XenoTherapeutics, Inc. The deal involves the acquisition of all issued and outstanding common shares of Essa, effectively concluding the company’s former operational focus on developing prostate cancer therapies.

Shareholders Receive Final Cash Distribution

As part of this dissolution process, Essa distributed a substantial cash payment to its shareholders. The total distribution amounted to $80 million, which equates to approximately $1.69 per common share. This payment was officially made on August 22, 2025.

Key details of the distribution include:
* A total shareholder payout of $80 million
* A per-share distribution of $1.69
* Payment date of August 22, 2025
* Ex-dividend trading commencing August 25, 2025
* Complete business wind-down through the XenoTherapeutics acquisition

Extreme Volatility Surrounds Ex-Dividend Date

The period surrounding this final corporate action triggered dramatic price movements in Essa’s stock. The company had previously issued a correction to an earlier announcement, confirming that the due bill period ended on August 22. Consequently, Essa shares began trading on an ex-dividend basis starting August 25.

Should investors sell immediately? Or is it worth buying Essa?

Remarkably, on that ex-dividend date of August 25, the stock experienced an intraday surge of 227.45%, reaching $0.78, even as it touched five-year lows. However, in after-hours trading that same day, the equity collapsed by 71.26% following the official confirmation of the capital distribution and corporate dissolution. This dramatic reversal reflects the immediate market repricing of the shares post-distribution and in light of the impending corporate closure. The trading session on August 26 then saw an additional intraday decline of 66.43%, while the five-day performance showed a devastating loss of 86.23%—clear evidence of the radical repricing of Essa as a company in liquidation.

Final Financial Results Before Dissolution

Shortly before these terminal corporate actions, Essa Pharma had released its financial results for the third quarter and first nine months ended June 30, 2025, on August 13. The company reported a quarterly net loss of $4 million, showing improvement compared to the $7.23 million loss recorded in the same period the previous year. The basic loss per share from continuing operations was $0.09, improved from the $0.16 reported one year earlier.

These financial metrics, however, have been rendered essentially meaningless. With the decision to proceed with complete corporate dissolution, traditional financial performance indicators have lost all relevance, completely overshadowed by the company’s liquidation process.