4 Billion Won Equity Conversion with Full Redemption of Preferred Shares Announced.. Bio Royalty Company on the Verge of Acquisition

XOMA Royalty Corp. (XOMA) disclosed that it has converted all Series X preferred shares held by its major shareholder, BVF Partners, into approximately 7.59 million common shares, representing about 43% of its outstanding common stock.

At the same time, the company declared quarterly dividends on its 8.625% Series A and 8.375% Series B preferred shares and announced it will redeem all of these preferred shares at $25 per share on July 14, after which they will be canceled.

This redemption is part of the merger agreement with Ligand Pharmaceuticals, signed on April 27. As of July 13, XOMA will issue one Contingent Value Right (CVR) for each common share, giving shareholders the right to receive additional consideration tied to the outcome of the litigation with Janssen.

Ligand Pharmaceuticals agreed at the end of April to acquire XOMA in an all-cash transaction at $39 per share—implying an enterprise value of about $739 million—and to issue one CVR per share.

According to the latest merger filings and disclosures, the deal terms remain unchanged. XOMA expects to close the merger around July 14, pending shareholder approval and regulatory clearances.

Headquartered in Emeryville, California, XOMA Royalty Corp. operates as a biotech royalty aggregator, investing in pharmaceutical and biotech pipelines rather than developing its own drugs, and collecting future milestone and royalty revenues.

The royalty-aggregator sector, including Ligand, acquires rights to the future sales of drugs in clinical or commercial stages, creating a niche market that reduces new-drug development risk while pursuing stable cash flows.