Xoma Launches $25 Million Registered Offering

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Xoma Launches $25 Million Registered Offering

By Shobhit Seth | February 13, 2017 — 11:00 AM EST

Xoma Corp. (XOMA) agreed to sell 1.2 million shares of its common stock and 5,003 shares of its convertible preferred stock in a registered direct offering. The Berkeley, California-based Xoma expects to gross around $25 million from the offering. (See also, Xoma Declares 1-for-20 Reverse Stock Split.)

The sale will be made directly to Biotechnology Value Fund L.P. and some of its affiliates. The sale will be made at a fixed price of $4.03 per share, which was Xoma’s closing price on the Nasdaq on Friday.

Each share of the Series X preferred stock will be equivalent to 1,000 shares of registered common stock, giving the preferred stock a value of $4,030 per common share, based on a conversion price of $4.03 per share of the common stock.

While the preferred stocks can be converted any time by the shareholder, there is a conditional cap on the conversion. The conversion will be disallowed if it leads to the beneficiary owing 19.99% or more of the then issued and outstanding total common stock of Xoma. (For more, see XOMA Reports Success in Insulin Trials.)

Subject to customary closing conditions, the direct issue is expected to close on or about February 15, 2017.

Xoma discovers and develops novel antibody therapeutics, 25 of which are financed by other biotech and pharmaceutical companies and tied to potential milestone and royalty payments. (See also, XOMA Reports Proof of Concept for New Drug.)
Published at Mon, 13 Feb 2017 16:00:00 +0000

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