XOMA Announces Commencement of Rights Offering
EMERYVILLE, Calif., Dec. 02, 2019 (GLOBE NEWSWIRE) -- XOMA Corporation (Nasdaq: XOMA) (“XOMA” or the “Company”) today announced it has commenced the previously announced rights offering to raise gross proceeds of approximately $22 million (the “Rights Offering”). Under the terms of the Rights Offering, the holders of XOMA’s common stock and Series X Preferred Stock and Series Y Preferred Stock as of 5:00 p.m., New York time, on November 29, 2019, the record date for the Rights Offering, are entitled to purchase up to 1,000,000 shares of common stock in the aggregate at a subscription price equal to $22.00 per share, or under certain circumstances, shares of non-voting Series Z preferred stock in lieu of common stock (collectively, the “Offered Shares”), as more fully described in the prospectus supplement, dated December 2, 2019, relating to the Rights Offering.
The Rights Offering will be fully backstopped by BVF Partners L.P., the Company’s largest stockholder, or its assignee(s)/transferee(s), which has agreed to purchase at a minimum its as-converted pro rata share of the offering amount, and will, in addition, purchase securities not subscribed for by the Company’s other stockholders in the Rights Offering, for a total of up to $22 million. XOMA expects to use the proceeds from the Rights Offering to acquire additional potential royalty and milestone revenue streams, for working capital and other general corporate purposes.
XOMA reserves the right to modify, extend, postpone or cancel the Rights Offering at any time prior to the closing of the sale of the shares in the Rights Offering. XOMA has engaged D.F. King & Co., Inc., to act as information agent with respect to the Rights Offering. For questions regarding the Rights Offering, or to obtain copies of the Rights Offering prospectus and any related materials, please contact D.F. King & Co. at email@example.com or by telephone at +1 800-591-6313.<>XOMA has filed a shelf registration statement (including a prospectus supplement) with the Securities and Exchange Commission (the “SEC”) (Reg. No. 333-223493). Before you invest, you should read the prospectus supplement and other documents XOMA has filed with the SEC for more complete information about XOMA and the Rights Offering. This announcement shall not constitute an offer to sell, or the solicitation of an offer to exercise the rights and purchase the underlying Offered Shares, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.
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