HOUSTON and VANCOUVER, BC, July 31,
2020 /CNW/ - ESSA Pharma Inc. ("ESSA", or the
"Company") (Nasdaq: EPIX) (TSX-V: EPI), a clinical-stage
pharmaceutical company focused on developing novel therapies for
the treatment of prostate cancer, today announced the closing of an
underwritten public offering of 7,100,000 common shares of the
Company at a public offering price of US$6.00 per share, before underwriting discounts,
for an aggregate offering of approximately US$42.6 million (the "Offering"). ESSA granted
the underwriters a 30-day option to purchase up to an additional
1,065,000 common shares (the "Option"), and the underwriters
exercised the Option on July 29,
2020. The proceeds to ESSA from the Offering, including the
exercise of the Option, were approximately US$45.0 million after deducting underwriting
discounts and commissions (such commission being equal to 6% of the
aggregate gross proceeds of the Offering) and other estimated
offering expenses. Existing investors participated in the financing
along with new investors Pfizer Inc. (NYSE: PFE), Avidity Partners,
CAM Capital, Point72, Ridgeback Capital, Sphera Healthcare and Vivo
Capital.
ESSA intends to use the net proceeds of the Offering for
pre-clinical and clinical activities, chemistry, manufacturing and
controls, research and development, as well as working capital and
general corporate purposes. Such proceeds will primarily be
used to expand the ongoing Phase 1 dose-escalation and extension
studies and allow the potential for conducting multiple combination
studies with EPI-7386. The proceeds are also expected to
cover initial expenses of the following Phase 2 trial and allow
further investment in the Company's pipeline programs. Based
on current Company estimates, the net proceeds from the Offering
combined with the Company's current cash reserves are expected to
provide sufficient cash resources through 2023.
Jefferies acted as sole book-running manager for the Offering.
Oppenheimer & Co. acted as lead manager for the Offering and
Bloom Burton Securities Inc. acted as co-manager for the
Offering.
The securities described above were offered by ESSA in
the United States pursuant to a
shelf registration statement on Form F-3 (File No. 333-225969) that
was previously filed by ESSA with the Securities and Exchange
Commission (the "SEC") and became effective on July 17, 2018 and in Canada pursuant to ESSA's Canadian short form
base shelf prospectus (the "Canadian Base Shelf Prospectus") dated
July 12, 2018 that was previously
filed with the securities regulatory authorities in each of the
provinces of British Columbia,
Alberta and Ontario.
A preliminary prospectus supplement related to the Offering was
filed with the SEC on July 28, 2020,
and a final prospectus supplement related to the Offering was filed
with the SEC on July 29, 2020, and
each are available on the SEC's website at http://www.sec.gov. A
preliminary prospectus supplement to ESSA's Canadian Base Shelf
Prospectus was also filed with the securities regulatory
authorities in each of the provinces of British Columbia, Alberta and Ontario on July 28,
2020 and is available at http://www.sedar.com and a final
prospectus related to the Offering was filed with the securities
regulatory authorities in each of the provinces of British Columbia, Alberta and Ontario on July 29,
2020 and is available at http://www.sedar.com.
About ESSA Pharma Inc.
ESSA is a clinical-stage
pharmaceutical company focused on developing novel and proprietary
therapies for the treatment of castration-resistant prostate cancer
in patients whose disease is progressing despite treatment with
current therapies. The Company filed an IND with the U.S. Food and
Drug Administration for EPI-7386 in the first calendar quarter of
2020 and clearance was received April
30,2020. A Clinical Trial Application was filed with Health
Canada in April 2020 and
authorization was received June
3rd, 2020.
About Prostate Cancer
Prostate cancer is the
second-most commonly diagnosed cancer among men and the fifth most
common cause of male cancer death worldwide (Globocan, 2018).
Adenocarcinoma of the prostate is dependent on androgen for tumor
progression and depleting or blocking androgen action has been a
mainstay of hormonal treatment for over six decades. Although
tumors are often initially sensitive to medical or surgical
therapies that decrease levels of testosterone, disease progression
despite castrate levels of testosterone generally represents a
transition to the lethal variant of the disease, mCRPC, and most
patients ultimately succumb to the illness. The treatment of mCRPC
patients has evolved rapidly over the past five years. Despite
these advances, additional treatment options are needed to improve
clinical outcomes in patients, particularly those who fail existing
treatments including abiraterone or enzalutamide, or those who have
contraindications to receive those drugs. Over time, patients with
mCRPC generally experience continued disease progression, worsening
pain, leading to substantial morbidity and limited survival rates.
In both in vitro and in vivo animal studies, ESSA's novel approach
to blocking the androgen pathway has been shown to be effective in
blocking tumor growth when current therapies are no longer
effective.
Forward-Looking Statement
Disclaimer
This release contains certain
information which, as presented, constitutes "forward-looking
information" within the meaning of the Private Securities
Litigation Reform Act of 1995 and/or applicable Canadian securities
laws. Forward-looking information involves statements that relate
to future events and often addresses 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
includes, but is not limited to, the timing and enrollment of a
Phase 1 study of EPI-7386, future presentations with respect
to EPI-7386 and the content thereof, other statements surrounding
the Company's clinical evaluation of EPI-7386, the Company's
current cash reserves and the anticipated use of proceeds from the
Offering.
Forward-looking statements and information 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. 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, political and social uncertainties
and contingencies. In making forward looking statements, ESSA may
make various material assumptions, including but not limited to (i)
the accuracy of ESSA's financial projections; (ii) obtaining
positive results of clinical trials; (iii) obtaining necessary
regulatory approvals; and (iv) general business, market and
economic conditions.
Forward-looking information is developed based on assumptions
about such risks, uncertainties and other factors set out herein
and in ESSA's Annual Report on Form 20-F dated December 19, 2019 under the heading "Risk
Factors", a copy of which is available on ESSA's profile on the
SEDAR website at www.sedar.com, ESSA's profile on EDGAR at
www.sec.gov, and as otherwise disclosed from time to time on ESSA's
SEDAR profile. 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 Canadian and United
States securities laws. Readers are cautioned against
attributing undue certainty to forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
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SOURCE ESSA Pharma Inc
