EXHIBIT
5.1
27 May
2009
XOMA
Ltd.
Clarendon
House
2
Church Street
Hamilton
HM 11
Bermuda
|
|
DIRECT
LINE:
E-MAIL:
OUR
REF:
YOUR
REF:
|
(441)
278-7974
clara.brady@conyersdillandpearman.com
DWPC/mra/386567/287195corpdocs.
|
Dear
Sirs
XOMA
Ltd. (the “Company”)
We have
acted as special legal counsel in Bermuda to the Company in connection with the
sale of up to 17,647,059 common shares, par value US$0.0005 each (the “Common
Shares”) pursuant to a registration statement on Form S-3 filed with the U.S.
Securities and Exchange Commission (the “Commission”) on 26 December 2007 (the
“Shelf Registration Statement”, which term does not include any other document
or agreement whether or not specifically referred to therein or attached as an
exhibit or schedule thereto) relating to the shelf registration under the U.S.
Securities Act of 1933, as amended, (the “Securities Act”) of common shares, par
value US$0.0005 each, preference shares, par value US$0.05 each, senior debt
securities, subordinated debt securities and warrants of the Company and a
supplemental prospectus forming part of the Shelf Registration Statement dated
and filed with the Commission on May 19, 2009 (the “Prospectus Supplement”,
together with the Shelf Registration Statement, the “Registration
Statement”).
For the
purposes of giving this opinion, we have examined the following
documents:
(i)
|
a
PDF copy of the Registration
Statement;
|
(ii)
|
a
PDF copy of a Warrant to Purchase Common Stock dated 20 May 2009 in the
name of Hudson Bay Overseas Fund Ltd., entitling the holder to purchase up
to 3,764,706 common shares of the Company;
and
|
(iii)
|
a
PDF copy of a Warrant to Purchase Common Stock dated 20 May 2009 in the
name of Hudson Bay Fund L.P., entitling the holder to purchase up to
2,117,647 common shares of the
Company.
|
The
documents listed in items (i) through (iii) above are herein sometimes
collectively referred to as the "Documents" and the documents listed in items
(ii) and (iii) are herein sometimes collectively referred to as the “Warrants”)
(which terms do not include any other instrument or agreement whether or not
specifically referred to therein or attached as an exhibit or schedule
thereto).
We have
also reviewed the memorandum of continuance and the bye-laws of the Company
(together, the “Constitutional Documents”), each certified by the Secretary of
the Company on 20 May 2009, certified resolutions passed at meetings of the
Company’s directors held on 12 De-
cember
2007 and 14 May 2009 and certified resolutions passed at meetings of the
Company’s shareholders held on 31 January 2000 and 19 May 2005, (together, the
“Resolutions”) and such other documents and made such enquiries as to questions
of law as we have deemed necessary in order to render the opinion set forth
below.
We have
assumed (a) the genuineness and authenticity of all signatures and the
conformity to the originals of all copies (whether or not certified) examined by
us and the authenticity and completeness of the originals from which such copies
were taken; (b) that where a document has been examined by us in draft form, it
will be or has been executed and/or filed in the form of that draft, and where a
number of drafts of a document have been examined by us all changes thereto have
been marked or otherwise drawn to our attention; (c) the accuracy and
completeness of all factual representations made in the Documents and the other
documents reviewed by us; (d) that the resolutions contained in the Resolutions
were passed at duly convened, constituted and quorate meetings and remain in
full force and effect and have not been rescinded or amended; (e) that the
Constitutional Documents will not be amended in any manner that would affect the
opinions expressed herein, (f) that there is no provision of the law of any
jurisdiction, other than Bermuda, which would have any implication in relation
to the opinions expressed herein; (g) the Company will have sufficient
authorised but unissued capital to effect the issue of any of the Common Shares
a the time of issuance; (h) that at all material times the Company's shares will
be listed on an appointed stock exchange, as defined in the Companies Act 1981,
as amended, and the consent to the issue and free transfer of the Common Shares
and the Warrants given by the Bermuda Monetary Authority as of 8 February 2000
will not have been revoked or amended at the time of issuance of any Common
Shares; (i) that, upon issue of the Common Shares, the Company will receive
consideration for the full issue price thereof which shall be equal to at least
the par value thereof; (j) that the Company will comply, to the extent
applicable, with the requirements of Part III of the Companies Act entitled
“Prospectus and Public Offers”; (k) the capacity, power and authority of each of
the parties, other than the Company, to enter into and perform its respective
obligations under the Documents and any and all documents entered into by such
parties in connection with the issuance of the Common Shares and the due
execution and delivery thereof by each party thereto; (l) that none of the
parties to the Documents and to any and all documents entered in into by such
parties in connection with the issuance of the Common Shares carries on business
from premises in Bermuda, at which it employs staff and pays salaries and other
expenses; and (m) the validity and binding effect under the laws of the State of
New York (the “Foreign Laws”) of the Warrants in accordance with their terms.
“Non-assessability”
is not a legal concept under Bermuda law, but when we describe the Common Shares
herein as being “non-assessable” we mean, subject to any contrary provision in
any agreement between the Company and any one of its members holding any of the
Common Shares (but only with respect to such member), that no further sums are
payable with respect to the issue of such shares and no member shall be bound by
an alteration in the Constitutional Documents after the date upon which it
became a member if and so far as the alteration requires such member to take or
subscribe for additional Common Shares or in any way increases its liability to
contribute to the share capital of, or otherwise pay money to, the
Company.
The
obligations of the Company under the Warrants (a) will be subject to the laws
from time to time in effect relating to bankruptcy, insolvency, liquidation,
possessory liens, rights of set off, reorganisation, amalgamation, moratorium or
any other laws or legal procedures, whether of a similar nature or otherwise,
generally affecting the rights of creditors; (b) will be subject to
statu-
tory
limitation of the time within which proceedings may be brought; (c) will be
subject to general principles of equity and, as such, specific performance and
injunctive relief, being equitable remedies, may not be available; (d) may not
be given effect to by a Bermuda court, whether or not it was applying the
Foreign Laws, if and to the extent they constitute the payment of an amount
which is in the nature of a penalty and not in the nature of liquidated damages;
and (e) may not be given effect by a Bermuda court to the extent that they are
to be performed in a jurisdiction outside Bermuda and such performance would be
illegal under the laws of that jurisdiction. Notwithstanding any
contractual submission to the jurisdiction of specific courts, a Bermuda court
has inherent discretion to stay or allow proceedings in the Bermuda
courts.
We
express no opinion as to the enforceability of any provision of the Warrants
which provides for the payment of a specified rate of interest on the amount of
a judgment after the date of judgment or which purports to fetter the statutory
powers of the Company. We have
made no investigation of and express no opinion in relation to the laws of any
jurisdiction other than Bermuda. This opinion is to be governed by
and construed in accordance with the laws of Bermuda and is limited to and is
given on the basis of the current law and practice in Bermuda. This
opinion is issued solely for the purposes of the filing of the Registration
Statement and the issuance of the Common Shares and Warrants by the Company as
described in the Registration Statement and is not to be relied upon in respect
of any other matter.
On the
basis of and subject to the foregoing, we are of the opinion that:
1.
|
The
Company has been duly continued to Bermuda and is existing under the laws
of Bermuda in good standing (meaning solely that it has not failed to make
any filing with any Bermuda governmental authority, or to pay any Bermuda
government fee or tax, which would make it liable to be struck off the
Register of Companies and thereby cease to exist under the laws of
Bermuda).
|
2.
|
When
issued and paid for as contemplated by the Registration Statement and the
Warrants, the Common Shares will be validly issued, fully paid and
non-assessable.
|
3.
|
The
Warrants have been duly executed and delivered by or on behalf of the
Company, and constitute the valid and binding obligations of the Company
in accordance with the terms
thereof.
|
We hereby
consent to the incorporation by reference of this opinion as an exhibit to the
Registration Statement and to the references to our firm under the caption
“Legal Matters” in the prospectus forming a part of the Registration
Statement. In giving such consent, we do not hereby admit that we are
experts within the meaning of Section 11 of the Securities Act or that we are in
the category of persons whose consent is required under Section 7 of the
Securities Act or the Rules and Regulations of the Commission promulgated
thereunder.
Yours
faithfully
Conyers
Dill & Pearman