June 9, 2009 (FinancialWire) — XOMA Ltd. (NASDAQ: XOMA) has entered into a definitive agreement with institutional investors to sell 10,434,782 units, with each unit consisting of one of the company’s common shares and a warrant to purchase 0.50 of a common share, for gross proceeds of approximately $12.0 million.

The investor has agreed to purchase the units at a purchase price of $1.15 per unit. The warrants, which represent the right to acquire an aggregate of up to 5,217,391 common shares, will be exercisable at any time on or after December 11, 2009 and prior to the 5-year, 6-month anniversary of the closing of the transaction at an exercise price of $1.30 per share, which was 110% of the closing price of the company’s common shares on the NASDAQ Global Market on June 4, 2009. Canaccord Adams Inc. and Wedbush PacGrow Life Sciences acted as placement agents for the offering.

The transaction is expected to close on or about June 10, 2009, subject to satisfaction of customary closing conditions. The company intends to use the net proceeds of this offering to continue development of its XOMA 052 product candidate and for other working capital and general corporate purposes.

XOMA discovers, develops and manufactures therapeutic antibody and other agents designed to treat inflammatory, autoimmune, infectious and oncological diseases.

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