Company: XOMAP
Filing Date: 2025-10-03
Form Type: 424B5
Source: 0001193125-25-230393
Chunk: 14

Company: XOMA Royalty Corp
Filing Date: 2025-10-03
Form: 424B5
Chunk 14
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ors with adequate liquidity. The liquidity of the market for the depositary shares depends on a number of factors, including prevailing interest rates, our financial condition and operating results, the number of holders of the depositary
shares, the market for similar securities and the interest of securities dealers in making a market in the depositary shares. We cannot predict the extent to which investor interest in our Company will maintain the trading market in our depositary
shares, or how liquid that market will be. If an active market is not maintained, investors may have difficulty selling shares of our depositary shares.

We may issue additional shares of the Series B Preferred Stock and additional series of preferred stock that rank on a parity with the Series B Preferred Stock as to dividend rights, rights upon liquidation or voting rights.

We are allowed to issue additional shares of Series B Preferred
Stock and additional series of preferred stock that would rank on a parity with the Series B Preferred Stock as to dividend payments and rights upon our liquidation, dissolution or winding up of our affairs pursuant to our articles of incorporation
and the certificate of designation for the Series B Preferred Stock without any vote of the holders of the Series B Preferred Stock. Our articles of incorporation authorize us to issue up to 1,000,000 shares of preferred stock in one or more series
on terms determined by our Board of Directors. As of June 30, 2025, we had 990,603 outstanding shares of preferred stock. However, the use of depositary shares enables us to issue significant amounts of preferred stock, notwithstanding the
number of shares authorized by our articles of incorporation. The issuance of additional shares of Series B Preferred Stock and additional series of parity preferred stock could have the effect of reducing the amounts available to the holders of
Series B Preferred Stock issued in this offering upon our liquidation or dissolution or the winding up of our affairs. It also may reduce dividend payments on the Series B Preferred Stock issued in this offering if we do not have sufficient funds to
pay dividends on all Series B Preferred Stock outstanding and other classes of stock with equal priority with respect to dividends.

In addition, although
holders of the depositary shares are entitled to limited voting rights, as described in “Description of Series B Preferred Stock and the Depositary Shares—Voting Rights,” with respect to such matters, the holders of the depositary
shares will vote separately as a class along with all other outstanding series of our preferred stock that we may issue upon which like voting rights have been conferred and are exercisable.