XOMA Announces Full Repayment of Hercules Technology Growth Capital Debt Obligation
March 22 2017 - 6:00AM
XOMA Corporation (Nasdaq:XOMA), a pioneer in the discovery and
development of therapeutic antibodies, announced today it has fully
prepaid the outstanding balance of approximately $6.5 million under
the Company’s term loan with Hercules Technology Growth Capital,
Inc., in accordance with the terms of the loan agreement.
“This loan prepayment is another important step in
our strategy to reduce debt and strengthen our balance sheet, as we
continue to pursue our goal of becoming a profitable company,” said
Jim Neal, Chief Executive Officer of XOMA. “We have decreased our
debt by approximately $16.7 million, or 39 percent, in the past
three months. We continue our focus on initiatives that enhance our
financial position. Our lean cost structure gives us the
opportunity to reach positive cash flow more quickly, creating
value for shareholders as we realize multiple revenue streams from
our portfolio of programs that are fully funded by partners across
the biopharma landscape.”
XOMA funded this extinguishment using, in part,
proceeds of the approximately $25 million equity offering to
Biotechnology Value Fund, L.P., completed in February 2017.
About XOMA Corporation
XOMA has an extensive portfolio of products,
programs, and technologies that are the subject of licenses the
Company has in place with other biotech and pharmaceutical
companies. Many of these licenses are the result of the
Company’s pioneering efforts in the discovery and development of
antibody therapeutics. There are more than 20 such programs
that are fully funded by partners and could produce milestone
payments and royalty payments in the future. In order to
maximize its value in a licensing transaction, XOMA continues to
invest in X358, an allosteric monoclonal antibody that reduces
insulin receptor activity, as the antibody could have a major
impact on the treatment of hyperinsulinism. For more information,
visit www.xoma.com.
Forward-Looking Statements
Certain statements contained in this press release
are forward-looking statements, including our ability to reach
positive cash flow and profitability and recognize revenue from our
portfolio of fully funded programs, within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. These statements are based on assumptions
that may not prove accurate, and actual results could differ
materially from those anticipated due to certain risks inherent in
the biotechnology industry and for companies engaged in the
development of new products in a regulated market. Potential risks
to XOMA meeting these expectations are described in more detail in
XOMA's most recent filing on Form 10-K and in other SEC filings.
Consider such risks carefully when considering XOMA's prospects.
Any forward-looking statement in this press release represents
XOMA's views only as of the date of this press release and should
not be relied upon as representing its views as of any subsequent
date. XOMA disclaims any obligation to update any forward-looking
statement, except as required by applicable law.
Investor contact:
Luke Heagle
Pure Communications
+1 910-726-1372
lheagle@purecommunications.com
Media contact:
Colin Sanford
Pure Communications
+1 415-946-1094
csanford@purecommunications.com
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