Xoma Floats New Stock Issue

Xoma is making a bid to expand its capital base. The company is floating just under 7.6 million shares of its common stock as an underwritten public issue, at a price of $3.62 per share. Additionally, the company's underwriters have been granted a 30-day purchase option for up to an additional 1.14 million shares to cover over-allotments, if any.

Xoma said it plans to use the offering's estimated net proceeds of $25.5 million for research and development, as well as for general business purposes.

Cowen Group's Cowen and Company is the sole book-running manager of the issue, which is expected to close "on or about" August 23.

At the moment, Xoma has slightly more than 83 million shares outstanding, and its stock trades at $4.07 per share.

The article Xoma Floats New Stock Issue originally appeared on Fool.com.

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