EXHIBIT
99.1
XOMA
Announces $12.0 Million Financing
BERKELEY,
Calif., June 5, 2009 -- XOMA Ltd. (Nasdaq: XOMA), a leader in the
discovery and development of antibody therapeutics, today announced that it has
entered into a definitive agreement with certain institutional investors to sell
10,434,782 units, with each unit consisting of one of the Company’s common
shares and a warrant to purchase 0.50 of a common share, for gross proceeds of
approximately $12.0 million, before deducting placement agent fees and estimated
offering expenses, in a "registered direct" offering. The investor has
agreed to purchase the units at a purchase price of $1.15 per unit. The
warrants, which represent the right to acquire an aggregate of up to 5,217,391
common shares, will be exercisable at any time on or after December 11, 2009 and
prior to the 5-year, 6-month anniversary of the closing of the transaction at an
exercise price of $1.30 per share, which was 110% of the closing price of the
Company’s common shares on the Nasdaq Global Market on June 4, 2009.
Canaccord Adams Inc. and Wedbush PacGrow Life Sciences acted as placement agents
for the offering.
The
transaction is expected to close on or about June 10, 2009, subject to
satisfaction of customary closing conditions. The Company intends to
use the net proceeds of this offering to continue development of its XOMA 052
product candidate and for other working capital and general corporate
purposes.
The
securities described above are being offered by XOMA Ltd. pursuant to a
registration statement previously filed and declared effective by the Securities
and Exchange Commission.
This
press release shall not constitute an offer to sell or the solicitation of an
offer to buy, nor shall there be any sale of such securities in any state or
jurisdiction in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any such
state. The securities may be offered only by means of a
prospectus. Copies of the final prospectus supplement and
accompanying base prospectus relating to this offering may be obtained at the
Securities and Exchange Commission’s website at http://www.sec.gov or
from Canaccord Adams at 99 High Street, Boston, MA 02110.
About
XOMA
XOMA
discovers, develops and manufactures therapeutic antibody and other agents
designed to treat inflammatory, autoimmune, infectious and oncological diseases.
The Company's proprietary product pipeline includes XOMA 052, an anti-IL-1 beta
antibody, and XOMA 3AB, a biodefense anti-botulism antibody
candidate.
Certain
statements contained herein relating to the anticipated closing of the offering
or product development, or that otherwise relate to future periods, are
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These
statements are based on assumptions that may not prove accurate. Actual results
could differ materially from those anticipated due to certain risks inherent in
the biotechnology industry and for companies engaged in the development of new
products in a regulated market. These risks, including those related to whether
the offering will close when anticipated or at all, the results of discovery
research and preclinical testing; the timing or results of pending and future
clinical trials (including the design and progress of clinical trials; safety
and efficacy of the products being tested; action, inaction or delay by the FDA,
European or other regulators or their advisory bodies; and analysis or
interpretation by, or submission to, these entities or others of scientific
data); uncertainties regarding the status of biotechnology patents;
uncertainties as to the cost of protecting intellectual property; changes in the
status of the existing collaborative and licensing relationships; the ability of
collaborators, licensees and other third parties to meet their obligations;
market demand for products; scale up and marketing capabilities; competition;
international operations; share price volatility; XOMA's financing needs and
opportunities; and risks associated with XOMA's status as a Bermuda company, are
described in more detail in XOMA's most recent annual report
on Form
10-K and in other SEC filings. Consider such risks carefully in considering
XOMA's prospects.
The XOMA
Ltd. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5960
Company
Contact:
Carol
DeGuzman
XOMA
510-204-7270
deguzman@xoma.com