XOMA offers $25 million series X convertible preferreds, common stock

By Stephanie N. Rotondo

Seattle, Feb. 14 – XOMA Corp. will raise $25 million from a placement of series X convertible preferred stock and common stock, the company said in a prospectus filed with the Securities and Exchange Commission on Tuesday.

The securities are being sold to Biotechnology Value Fund LP, an existing shareholder, as well as entities affiliated with the fund.

The company will sell 5,003 of the convertible preferreds at $4,030 each, along with 1.2 million shares of stock at $4.03 each.

Each convertible preferred is convertible into 1,000 shares of common stock. The holder can convert at any time, provided that such a conversion will not result in the holder owning more than 19.99% of the outstanding common stock.

Proceeds will be used to prepay certain outstanding debt, to fund the clinical development of XOMA 358, to fund additional preclinical and regulatory activities for other product candidates and for other general corporate purposes.

XOMA is a Berkeley, Calif.-based biotechnology company.

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