Company: XOMAP
Filing Date: 2025-10-03
Form Type: 424B5
Source: 0001193125-25-230393
Chunk: 43

Company: XOMA Royalty Corp
Filing Date: 2025-10-03
Form: 424B5
Chunk 43
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 dividends received deduction allowable with respect to such dividend. If the amount of the reduction exceeds the U.S. Holder’s tax basis in such stock, the excess is treated as gain from
the sale or other disposition of the Series B Preferred Stock.

Holder’s Conversion Option in connection with a Change of Control or Delisting Event.

In the event of a U.S. Holder’s conversion of Series B Preferred Stock in connection with a Change of Control, Delisting Event or
otherwise, the tax consequences of such conversion will depend, in part, upon the facts underlying the transaction in which the conversion occurs. A U.S. Holder should consult its tax advisor regarding the tax consequences of the conversion of
Series B Preferred Stock.

S-31

Constructive Distributions. The conversion price of our Series B Preferred Stock is subject to adjustment under certain circumstances. Additionally, because the Series B Preferred Stock may be redeemed at a premium under certain circumstances, the Series B Preferred Stock may be treated as issued with redemption premium. In either such circumstances, U.S. Holders of our Series B Preferred Stock may be deemed to have received a distribution if the adjustment (or failure to make an adjustment), or if the redemption premium, has the effect of increasing the proportionate interest of the U.S. holder in our assets or earnings and profits. If such adjustments are made, U.S. Holders will be deemed to have received constructive distributions from us even though they may not receive any cash or property. Any deemed distributions will be taxable as a dividend, return of capital, or capital gain as described in “ Distributions” above. However, each U.S. Holder should consult with its tax advisor as to whether a constructive dividend deemed paid to a non-corporateU.S. Holder would be eligible for the preferential rates of U.S. federal income tax applicable in respect of certain dividends received. Sale, Exchange, or Certain Other Taxable Dispositions of the Series B Preferred Stock. A U.S. Holder will generally recognize taxable gain or loss on a sale or exchange or other taxable disposition (other than certain redemptions described under “ Redemptions of the Series B Preferred Stock ” )of Series B Preferred Stock in an amount equal to the difference, if any, between (1) the amount realized upon the sale, exchange, or disposition, and (2) such U.S. Holder’s adjusted tax basis in the Series B Preferred Stock sold or exchanged. Such capital gain or loss will generally be treated as long-term capital gain or loss if the U