Company: XOMAP
Filing Date: 2025-10-03
Form Type: 424B5
Source: 0001193125-25-230393
Chunk: 13

Company: XOMA Royalty Corp
Filing Date: 2025-10-03
Form: 424B5
Chunk 13
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 claims of our current and
future creditors and any future series or class of preferred stock we may issue that ranks senior to the Series B Preferred Stock. In addition, the Series B Preferred Stock effectively ranks junior to all existing and future indebtedness and other
liabilities of (as well as any preferred equity interests held by others in) our existing subsidiaries and any future subsidiaries. Our existing subsidiaries are and any future subsidiaries would be separate legal entities and have no legal
obligation to pay any amounts to us in respect of dividends or other distributions due on the Series B Preferred Stock. If we are forced to liquidate our assets to pay our creditors, we may not have sufficient assets to pay amounts due on any or all
of the Series B Preferred Stock then outstanding. We and our subsidiaries have incurred and may in the future incur substantial amounts of debt and other obligations that will rank senior to the Series B Preferred Stock. We may incur additional
indebtedness and become more highly leveraged in the future, which could harm our financial position and potentially limit our cash available to pay dividends or other distributions. As a result, we may not have sufficient funds remaining to satisfy
our dividend obligations relating to our Series B Preferred Stock if we incur additional indebtedness.

Future offerings of debt or senior equity
securities may adversely affect the market price of the depositary shares. If we decide to issue debt or senior equity securities in the future, it is possible that these securities will be governed by an indenture or other instrument containing
covenants restricting our operating flexibility. Additionally, any convertible or exchangeable securities that we issue in the future may have rights, preferences

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and privileges more favorable than those of the Series B Preferred Stock and may result in dilution to holders of the depositary shares. We and, indirectly, our stockholders, will bear the cost
of issuing and servicing such securities. Because our decision to issue debt or equity securities in any future offering will depend on market conditions and other factors beyond our control, we cannot predict or estimate the amount, timing or
nature of our future offerings. Thus holders of the depositary shares will bear the risk of our future offerings reducing the market price of the depositary shares and diluting the value of their holdings in us.

The market for our depositary shares may not provide investors with adequate liquidity.

Our depositary shares are listed on the Nasdaq Global Market. However, the trading market for the depositary shares may not be maintained and may not provide
invest