Company: XOMAP
Filing Date: 2025-07-23
Form Type: CORRESP
Source: 0001193125-25-163561
Chunk: 4

Company: XOMA Royalty Corp
Filing Date: 2025-07-23
Form: CORRESP
Chunk 4
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 Shortfall, respectively. After accounting for the likelihood of different payment scenarios for the tax refund and lease deposit, Turnstone has applied a 40% discount for the tax refund and lease deposit and has assumed no adjustments for net cash calculations under the CVR Agreement. Accordingly, the probability-weighted estimate of the amount payable is $0.03 per CVR.

In determining the probability-weighted estimated payout, we note that there can be no assurance: (i) that Turnstone will receive the tax receivables and/or the return of a lease security deposit prior to the expiration of the CVRs necessary for payment pursuant to the CVRs, (ii) that there will be any positive or negative adjustments based on the post-closing calculation of Closing Net Cash or (iii) regarding the exact amount of CVR Proceeds or the timing of any such payment, if any. Neither the Merger Agreement nor the CVR Agreement requires Purchaser to use any efforts in connection with the CVR Proceeds. The discount reflects Turnstone’s assessment of the fair value of the CVRs, taking into account the contingent nature of the payment, the absence of industry benchmarks for similar instruments, and the inherent uncertainty regarding the receipt of payments for the tax refunds or security deposit. This estimate is subject to change and should not be construed as a prediction or guarantee of actual payments under the CVRs. If any CVR Proceeds are received after one year following the date of the closing of the Merger, holders of the CVRs will not receive any payment pursuant to the CVR Agreement. Accordingly, in deciding whether to tender your Shares into the Offer, you should understand that it is possible that no payment will be made pursuant to the CVRs.” * * * * * If you have any further questions or comments, or if you require any additional information, please contact Branden Berns of Gibson, Dunn & Crutcher LLP, by telephone at (415) 393-4631.Thank you for your assistance.

| Very truly yours, 
 Owen Hughes       |     |                 |
| By:               |     | /s/ Owen Hughes |
|                   |     | Owen Hughes     |

Via E-mail:

| cc: | Ryan A. Murr, Gibson, Dunn & Crutcher LLP |

Branden C. Berns, Gibson, Dunn & Crutcher LLP Melanie E. Neary, Gibson, Dunn & Crutcher LLP Sammy Farah, Turnstone Biologics Corp.