Company: XOMAP
Filing Date: 2025-10-03
Form Type: 424B5
Source: 0001193125-25-230393
Chunk: 44

Company: XOMA Royalty Corp
Filing Date: 2025-10-03
Form: 424B5
Chunk 44
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.S. Holder’s holding period for the Series B Preferred Stock sold or exchanged is more than one year. Long-term capital gains of noncorporate taxpayers are generally taxed at preferential rates. The deductibility of capital losses is subject to limitations. Redemptions of the Series B Preferred Stock. Whether a payment made in redemption of the Series B Preferred Stock will be treated as a dividend or as a payment in exchange for the Series B Preferred Stock can only be determined on the basis of the particular facts as to each U.S. Holder of the Series B Preferred Stock at the time of redemption. In general, a U.S. Holder of the Series B Preferred Stock will recognize capital gain or loss measured by the difference between the amount received by the U.S. Holder for such Series B Preferred Stock upon the redemption and such U.S. Holder’s adjusted tax basis in the Series B Preferred Stock redeemed if such redemption is considered to:

| • |     | result in a complete termination of the U.S. Holder’s stock interest in us under Section 302(b)(3) of 
 the Code;                                                                                             |

| • |     | be substantially disproportionate with respect to the U.S. Holder under Section 302(b)(2) of the Code; |

| • |     | be not essentially equivalent to a dividend with respect to the U.S. Holder under Section 302(b)(1) of the 
 Code; or                                                                                                   |

| • |     | be a redemption of stock held by a shareholder who is not a corporation and where such redemption results in a 
 partial liquidation of us under Section 302(b)(4) of the Code.                                                 |

In applying these tests, there must be taken into account not only the Series B Preferred Stock being redeemed, but also such U.S. Holder’s ownership of other classes and series of our capital stock and any options (including stock purchase rights) to acquire any of the foregoing. A U.S. Holder of the Series B Preferred Stock also must take into account any such securities (including options) that are considered to be owned by such U.S. Holder by reason of the constructive ownership rules set forth in Sections 302(c) and 318 of the Code. If the redemption does not meet any of the tests described above, then the redemption proceeds received from the Series B Preferred Stock will be treated as a distribution on our shares and will be taxable as described under the S-32

caption “Distributions” above. If a redemption of the Series B Preferred Stock is treated as a