ESSA Pharma (EPIX) ($72MM market cap) is the newest addition to the damaged biotech basket. EPIX is a medical stage pharmaceutical firm that was beforehand centered on growing therapies for the therapy of prostate most cancers. On Thursday (10/31/24), the corporate introduced they have been terminating all of their medical research and an initiating a evaluation of strategic alternate options.
Within the press launch the corporate gave us 9/30 money numbers:
Liquidity and Excellent Share Capital
| · | As of September 30, 2024, the Firm had accessible money reserves and short-term investments of $126.8 million and web working capital of $124.3 million (unaudited figures). The Firm has no long-term debt amenities. |
| · | As of September 30, 2024, the Firm had 44,388,551 frequent shares issued and excellent, and there have been 2,920,000 frequent shares issuable upon the train of prefunded warrants at an train value of $0.0001. |
This one is pretty clear, though we do not have a severance cost estimate (the corporate has 50 staff), EPIX hasn’t been burning a lot money, solely roughly $7MM 1 / 4 previous to the termination of their R&D program. My again of the envelope math is fairly straight ahead, I am assuming about $20MM of the bills to wind down the corporate from right here or get it to a spot the place a reverse merger could be executed, be happy to make your personal assumptions.
My liquidation worth is about 40% larger than the place shares traded Friday following the information.
Disclosure: I personal shares of EPIX