XOMA Royalty's Tender Offer for LAVA Therapeutics Extended
XOMA Royalty Extends Tender Offer for LAVA Therapeutics
In recent news, XOMA Royalty Corporation (NASDAQ: XOMA) has announced the extension of its tender offer to purchase all outstanding shares of LAVA Therapeutics N.V. (NASDAQ: LVTX). This offer includes a cash amount determined per the Purchase Agreement and a contingent value right (CVR), giving shareholders rights to a portion of net proceeds from both partnered and unpartnered assets of LAVA.
New Tender Offer Expiration Date
The tender offer was initially set to end one minute after 11:59 p.m. Eastern Time on October 3, 2025. However, it has now been extended to October 17, 2025, one minute after 11:59 p.m. Eastern Time. This extension provides LAVA shareholders more time to consider this significant opportunity. The acquisition is anticipated to close in the fourth quarter of 2025, contingent upon customary closing conditions.
Shareholder Actions
LAVA shareholders who have already tendered their shares are not required to take any further action regarding the extension. Existing support agreements ensure that those shareholders back the offer before the new expiration date. This simplification should encourage smoother processes during the acquisition.
Conditions for Closing the Offer
For the tender offer to close successfully, multiple conditions must be met. These include tendering at least 80% of the common shares of LAVA, or at least 75% in certain circumstances. Additionally, it requires specific shareholder resolutions to be adopted at a shareholders' meeting, maintaining a required cash balance at closing, and other customary conditions. Following this, a corporate reorganization will occur, allowing XOMA Royalty to acquire 100% of LAVA's shares, ensuring fairness by providing the same cash and CVR consideration to all remaining shareholders.
About XOMA Royalty Corporation
XOMA Royalty is a unique biotechnology royalty aggregator dedicated to fueling the advancement of healthcare. By acquiring the future economic rights linked to both pre-commercial and commercial therapeutic candidates, XOMA provides biotech companies the funding necessary to propel their internal drug candidates forward without diluting equity.
Growth and Strategic Direction
With an expanding portfolio, XOMA Royalty demonstrates its commitment to the biotechnology sector. The firm works closely with leading pharmaceutical entities, ensuring that its investments contribute to innovations in treatment opportunities across various diseases.
About LAVA Therapeutics
LAVA Therapeutics N.V. specializes in the development of bispecific gamma delta T cell engagers, notably leveraging its proprietary Gammabody® platform. The company collaborates with major partners like Johnson & Johnson and Pfizer on clinical-stage products that aim to address significant cancer treatment challenges with innovative, targeted therapies.
Future Prospects
As LAVA continues to develop promising therapeutic candidates targeting critical ailments, the acquisition by XOMA Royalty could significantly enhance LAVA’s operational capabilities, leveraging XOMA's extensive experience and resources to further develop its treatment portfolio.
Frequently Asked Questions
What is the purpose of the tender offer from XOMA Royalty?
The tender offer aims to acquire all outstanding shares of LAVA Therapeutics to expand XOMA's portfolio in the biotech sector, particularly in innovative therapies.
How long has the tender offer been extended?
The tender offer has been extended until one minute after 11:59 p.m. Eastern Time on October 17, 2025.
What conditions must be met for the closing of the offer?
The closing condition includes the tender of at least 80% of LAVA's shares and various customary conditions that must be satisfied to finalize the acquisition.
How does this acquisition impact existing LAVA shareholders?
Existing LAVA shareholders will receive cash and contingent value rights, ensuring equity during the transition to XOMA’s ownership while not needing to re-tender shares if they had previously done so.
What is the significance of the contingent value right in the offer?
The CVR entitles shareholders to 75% of net proceeds from certain assets and licensing deals, potentially providing significant financial benefits as LAVA's programs develop.
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