Xoma Corp. on Monday said it will issue 2.5 million new sharesof common stock to redeem all of its $47.3 million worth of 9percent convertible subordinated debentures due 2014.
The Berkeley, Calif., company also announced Monday that itlost $6.6 million in its first quarter and that the Food and DrugAdministration will review its CD-5 Plus product for treatmentof graft-vs.-host disease following bone marrow transplants.
The debenture redemption, which will take effect on May 30,will be priced at 107.2 percent of the principal amount plusaccrued and unpaid interest, or $1,083.25 for each $1,000principal amount.
Holders have the option of converting their debentures intocommon stock (NASDAQ:XOMA) at $19 per share, or 52.63shares for each $1,000 principal amount of debentures. Basedon Xoma's Monday closing price of $27 (down $2), the shareshave a market value of $1,421.
Xoma will issue 2.5 million shares of common stock to cover theconversion. Earlier this month, Xoma netted $86 millionthrough a secondary offering of 3.4 million shares of commonstock. When the debenture conversion is completed, Xoma willhave 20.8 million shares outstanding.
In its first quarter ended March 31, the company said it had anet loss of $6.6 million, or 44 cents a share, on revenues of $5.1million. For the first quarter of 1990, Xoma had revenues of$7.5 million, including a $4 million one-time license fee paid byJohnson & Johnson, and a net loss of $3.3 million, or 25 centsper share.
The higher net loss in the current quarter was due to increasedexpenses in preparation for product approvals, said companyspokeswoman Carol DeGuzman.
The company said the FDA's biological response modifierscommittee will review CD5 Plus on June 10. The company isalso awaiting FDA approval for its E5 drug for the treatment ofgram-negative sepsis.
-- Karen Bernstein BioWorld Staff
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