XOMA enters $60M committed financing

XOMA, a California, USA-based drug developer, has entered into a committed equity financing facility, under which it has the option to sell up to $60.0 million of its registered common shares to Azimuth Opportunity over a 24-month period. XOMA is not obligated to utilize any of the facility and remains free to enter other financing transactions. The firm did not pay a commitment fee, or issue any warrants, to secure this facility.

"The agreement is an important addition to our financial options and provides added financial flexibility," said Steven Engle, the company's chief executive.

XOMA will determine, at its sole discretion, the timing, dollar amount and floor price per share of each draw under this facility, subject to certain conditions. The number and price of shares sold in each draw are determined by a contractual formula designed to approximate fair market value, less a discount. Any shares under this facility will be sold pursuant to a prospectus supplement and the base prospectus, which forms a part of the firm's shelf registration statement declared effective by the Securities and Exchange Commission on May 29.