XOMA and LAVA Therapeutics Reveal Purchase Agreement Amendments
Amendments to the Purchase Agreement Between XOMA and LAVA
XOMA Royalty Corporation (NASDAQ: XOMA) and LAVA Therapeutics N.V. (NASDAQ: LVTX) have recently made significant amendments to their earlier announced definitive share purchase agreement. This collaborative effort aims to beneficially adjust the financial structure of the agreement, ensuring both companies can meet their strategic goals.
Key Changes in Cash Offer for LAVA Shareholders
As part of the amendments, LAVA shareholders who decide to tender their shares will now receive an adjusted initial cash amount of $1.04 per share. This adjustment compares to the previously anticipated cash amount that ranged between $1.16 and $1.24 per share. Additionally, there’s an incorporation of a non-transferable contingent value right (CVR), which will provide rights to certain cash payments that include a percentage of net proceeds from LAVA’s partnered assets and potential future unpartnered programs. This amendment signifies a nuanced understanding of the potential financial obligations and the current state of LAVA's cash reserves.
Extension of Tender Offer Timeline
The tender offer, initially set to expire after October 17, 2025, has now been extended to November 12, 2025. This extension allows shareholders additional time to consider the offer while ensuring that the acquisition process aligns with closing expectations set for the fourth quarter of 2025.
Important Provisions and Shareholder Conditions
The amended purchase agreement introduces several pivotal conditions that need to be satisfied for the deal's consummation. Notably, the tender of at least 80% of LAVA's outstanding shares and other customary closing conditions will be essential. Importantly, LAVA shareholders who previously tendered their shares are not required to retender or take further action due to this latest extension.
The Role of the Extraordinary General Meeting
LAVA has set a new date for its Extraordinary General Meeting (EGM) to discuss and seek approval for essential resolutions related to these transactions. The EGM is scheduled for November 7, 2025, and the gathering offers a formal platform for shareholders to engage with the proposed changes and ensure they align with shareholder interests.
About XOMA Royalty Corporation
XOMA Royalty Corporation operates as a biotechnology royalty aggregator, aiding biotech companies in achieving their objectives to enhance human health. By acquiring the potential future revenue from pre-commercial and commercial therapeutic candidates, XOMA provides a lifeline of non-dilutive and non-recourse funding which supports the further development of internal drug candidates or general corporate purposes. This strategy positions XOMA as a crucial player in the biotechnology sector, fostering innovation while ensuring stakeholders see value in their investments.
About LAVA Therapeutics
LAVA Therapeutics N.V. is a cutting-edge biopharmaceutical organization focused on the development of bispecific gamma delta T cell engagers through its Gammabody platform. Their flagship products work in targeting various cancer types, reflecting a commitment to advancing therapeutic solutions in oncology. LAVA's partnerships with industry giants highlight their potential impact and relevance in the biopharmaceutical landscape.
Frequently Asked Questions
What are the key terms of the purchase agreement amendment between XOMA and LAVA?
The amendment includes a revised cash offer for LAVA shareholders and adjustments to the CVR terms.
When is the new expiration date for the tender offer?
The tender offer has been extended to November 12, 2025.
What does LAVA's shareholder base need to do following the amendments?
LAVA shareholders who tendered their shares do not need to take any further action as their shares will remain part of the offer.
What conditions must be met for the acquisition to close?
The acquisition is contingent upon the tender of a significant percentage of shares and other customary closing conditions.
Why is the Extraordinary General Meeting important?
The EGM provides a forum for shareholders to discuss and vote on resolutions related to these significant transactions.
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