Company: XOMAP
Filing Date: 2025-10-03
Form Type: 424B5
Source: 0001193125-25-230393
Chunk: 18

Company: XOMA Royalty Corp
Filing Date: 2025-10-03
Form: 424B5
Chunk 18
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     | international disputes and geopolitical instability, including military conflict and acts of terrorism; and |

| • |     | significant natural disasters. |

As a result of these and other factors, investors who purchase the depositary shares in this offering may experience a decrease, which could be substantial and rapid, in the market price of the depositary shares, including decreases unrelated to our operating performance or prospects. Furthermore, the capital markets have in the past experienced and may experience in the future extreme price and volume fluctuations that have affected and continue to affect the market prices of equity securities of many companies. These fluctuations often have been unrelated or disproportionate to the operating performance of those companies. These broad market and industry fluctuations, as well as general economic, political, and market conditions such as recessions, interest rate changes, or international currency fluctuations may negatively S-13

impact the market price of the depositary shares. If the market price of the depositary shares does not exceed the price at which the holders acquired their shares, such holders may not realize a
full return on their investment. In the past, companies that have experienced volatility in the market price of their stock have been subject to securities class-action litigation. We may in the future be the target of this type of litigation.

Management will have broad discretion as to the use of the proceeds from this offering, and may not use the proceeds effectively.

After funding future dividends, we intend to use the net proceeds from this offering for general corporate purposes, including, without limitation, funding
future acquisitions of potential milestone and royalty payments. However, our management will have broad discretion in the application of the net proceeds from this offering and could spend the proceeds in ways that do not improve our results of
operations or enhance the value of our Common Stock. The failure by management to apply these funds effectively could result in financial losses that could have a material adverse effect on our business and cause the price of our Common Stock and
the depositary shares to decline.

You may be subject to tax if we make or fail to make certain adjustments to the Conversion Rate of the Series B Preferred Stock (and depositary shares) even though you do not receive a corresponding cash dividend on the depositary shares.

The Conversion Rate
(as defined in “Description of Series B Preferred Stock and Depositary Shares—Conversion Rights”) for the Series B Preferred Stock (and depositary shares) is subject to adjustment in certain circumstances. A failure to adjust (or
to adjust adequately) the Conversion Rate after an event that increases your proportionate interest in us