For common stock holders, the merger timeline solidification and preferred redemption remove overhang and simplify the capital structure ahead of the acquisition. Monitor the stockholder vote and regulatory approvals for the Ligand deal. For preferred holders, redeemable securities should be sold before the July 14 redemption date or held to receive $25-plus-dividend cash-out; post-redemption the tickers (XOMAP, XOMAO) will be delisted.
Price Chart
Executive Summary
XOMA Royalty Corp announced that the previously announced acquisition by Ligand Pharmaceuticals is expected to close on or about July 14, 2026, and simultaneously called for full redemption of its two outstanding perpetual preferred stock series (XOMAP and XOMAO) at $25 per share/share-equivalent plus accrued dividends, effective the same date. The redemption is a direct consequence of the pending merger, and a CVR record date for common stockholders was also set for July 13, 2026.
Key Facts
- Merger with Ligand expected to close on or about July 14, 2026
- All 984,000 shares of 8.625% Series A Preferred (XOMAP) and 1,760,500 depositary shares of 8.375% Series B Preferred (XOMAO) to be redeemed at $25.00 each on July 14, 2026
- Final quarterly dividends declared: $0.53906 per Series A share, $0.52344 per Series B depositary share, payable July 15 to record holders of July 2
- CVR record date for common stockholders set at 5:00 p.m. ET on July 13, 2026
- Preferred stock to be delisted from Nasdaq upon completion of redemption
- Redemption is conditioned on completion of the Ligand acquisition
Financial Impact
Total redemption cost of approximately $68.6 million (Series A: ~$24.6M, Series B: ~$44.0M) plus accrued dividends; represents ~13% of XOMA's $524M market cap
Risk Factors
- Merger closing conditions (stockholder approval, regulatory clearances) may not be satisfied or waived by July 14
- CVR value is contingent on the Janssen litigation outcome and may be zero
- Preferred redemption reduces cash on hand ahead of merger close
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-269734 |
| Document: d143305dex991.htm | 0001193125-26-269734 |
| Document: 0001193125-26-269734-index-headers.html | 0001193125-26-269734 |
| Document: 0001193125-26-269734-index.html | 0001193125-26-269734 |
| Document: 0001193125-26-269734.txt | 0001193125-26-269734 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 27, 2026 9w ago | 15-12G | — | awaiting T+5 | — | — |
Jul 14, 2026 11w ago | 8-K | $40.17 $40.17 | · 0.00% | ▲ +0.47% | $163.54 (+307.12%) |
Jun 12, 2026 15w ago | DEFA14A | $41.95 $42.00 | ▲ +0.12% | ▲ +1.50% | $163.54 (+289.85%) |
Jun 12, 2026 15w ago | 8-K | $41.95 $42.00 | ▲ +0.12% | ▲ +1.50% | $163.54 (+289.85%) |
Mar 18, 2026 28w ago | Press Release | $28.76 $30.53 | ▲ +6.15% | ▲ +8.37% | $163.54 (+468.64%) |
Mar 18, 2026 28w ago | 8-K | $27.35 $30.20 | ▲ +10.42% | ▲ +11.14% | $163.54 (+497.95%) |
Mar 18, 2026 28w ago | Press Release | $27.35 $30.20 | ▲ +10.42% | ▲ +11.14% | $163.54 (+497.95%) |
Mar 12, 2026 29w ago | Press Release | $26.86 $28.76 | ▲ +7.07% | ▲ +8.05% | $163.54 (+508.86%) |
US Market Status
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