XOMA Ltd. (XOMA, Financial) filed Quarterly Report for the period ended 2010-03-31.
Xoma Ltd. has a market cap of $176.7 million; its shares were traded at around $0.6764 with a P/E ratio of 67.6 and P/S ratio of 1.7. XOMA is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Prior to amendment, we recorded the warrants issued in May of 2009 as a liability at fair value due to the Eliminated Adjustment Provisions and certain other provisions as further discussed below in Critical Accounting Estimates: Warrant Liabilities, which was estimated using the Monte Carlo Simulation Model (Simulation Model). The fair value of the warrant liability was $2.9 million on February 1, 2010, prior to amendment of the warrants, resulting in an increase in the fair value of the warrant liability of $0.5 million which we recorded in other income (expense). Subsequent to amendment of the warrant terms, on February 2, 2010, the fair value of the warrant liability using the Black-Scholes Model was $2.6 million, resulting in a decrease in the fair value of the warrant liability of $0.3 million which we recorded in other income (expense). The holders of these warrants subsequently exercised all their warrants, acquiring 5,882,353 common shares for an aggregate exercise price of $5,882. As of March 31, 2010, none of the warrants issued in May of 2009 remained outstanding and the related liability was fully extinguished and reclassified to additional paid-in capital.
Cash and cash equivalents at March 31, 2010 were $28.4 million compared with $23.9 million at December 31, 2009. Net cash used in operating activities was $16.4 million for the three months ended March 31, 2010, compared with net cash provided by operations of $15.3 million for the same period in 2009. The decrease in cash provided by operations for the three months ended March 31, 2010, as compared to same period of 2009, was primarily due to a decrease in revenue receipts for license and collaborative fees and royalties. In the first quarter of 2009, we received $23.2 million related to the expansion of our existing collaboration with Takeda, and recognized royalty revenue from sales of LUCENTIS® and RAPTIVA® of $4.6 million.
Net cash used in investing activities was $0.1 million for the three months ended March 31, 2010, compared with $3.3 million for the same period of 2009. Cash used in investing activities for the three months ended March 31, 2010 consisted of purchases of fixed assets. Net cash used in investing activities of $3.3 million for the three months ended March 31, 2009 primarily consisted of an increase in restricted cash of $4.5 million relating to the receipt of royalties held in a restricted account under our Goldman Sachs term loan facility. This cash outflow was partially offset by proceeds from maturities of investments in the period of $1.3 million.
Net cash provided by financing activities was $21.0 million for the three months ended March 31, 2010, compared with $41,000 for the same period of 2009. Cash provided by financing activities in the first quarter of 2010 related to proceeds received from the issuance of common shares of $25.5 million, partially offset by $4.5 million paid to the holders of warrants issued in June of 2009 upon modification of the terms.
In the third quarter of 2009, we entered into the ATM Agreement, under which we may sell up to 25 million of our common shares from time to time through Wm Smith, as the agent for the offer and sale of the common shares. Wm Smith may sell these common shares by any method permitted by law deemed to be an at the market offering as defined in Rule 415 of the Securities Act of 1933, including but not limited to sales made directly on The NASDAQ Global Market, on any other existing trading market for the common shares or to or through a market maker. Wm Smith may also sell the common shares in privately negotiated transactions, subject to our approval. We pay Wm Smith a commission equal to 3% of the gross proceeds of all common shares sold through it as sales agent under the ATM Agreement but in no event less than $0.02 per share. Shares sold under the ATM Agreement are sold pursuant to a prospectus which forms a part of a registration statement declared effective by the Securities and Exchange Commission on May 29, 2008. From the inception of the ATM Agreement through March 31, 2010, we sold a total of 12,990,842 common shares through Wm Smith for aggregate gross proceeds of $9.3 million, including 8,940,225 common shares sold in the first quarter of 2010 for aggregate gross proceeds of $6.4 million. Total offering expenses related to these sales from inception to March 31, 2010 were $0.3 million.
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Xoma Ltd. has a market cap of $176.7 million; its shares were traded at around $0.6764 with a P/E ratio of 67.6 and P/S ratio of 1.7. XOMA is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Other income (expense) was ($5.8 million) and $3,000 for the three months ended March 31, 2010 and 2009, respectively. The increase in other expense in 2010 primarily related to $4.5 million paid in the first quarter of 2010 to the holders of warrants issued in June of 2009, upon modification of the terms. In addition, other expense includes losses of $1.3 million recognized relating to the revaluation of our warrant liabilities during the period. See Results of Operations: Warrant Liabilities below for additional disclosure.Prior to amendment, we recorded the warrants issued in May of 2009 as a liability at fair value due to the Eliminated Adjustment Provisions and certain other provisions as further discussed below in Critical Accounting Estimates: Warrant Liabilities, which was estimated using the Monte Carlo Simulation Model (Simulation Model). The fair value of the warrant liability was $2.9 million on February 1, 2010, prior to amendment of the warrants, resulting in an increase in the fair value of the warrant liability of $0.5 million which we recorded in other income (expense). Subsequent to amendment of the warrant terms, on February 2, 2010, the fair value of the warrant liability using the Black-Scholes Model was $2.6 million, resulting in a decrease in the fair value of the warrant liability of $0.3 million which we recorded in other income (expense). The holders of these warrants subsequently exercised all their warrants, acquiring 5,882,353 common shares for an aggregate exercise price of $5,882. As of March 31, 2010, none of the warrants issued in May of 2009 remained outstanding and the related liability was fully extinguished and reclassified to additional paid-in capital.
Cash and cash equivalents at March 31, 2010 were $28.4 million compared with $23.9 million at December 31, 2009. Net cash used in operating activities was $16.4 million for the three months ended March 31, 2010, compared with net cash provided by operations of $15.3 million for the same period in 2009. The decrease in cash provided by operations for the three months ended March 31, 2010, as compared to same period of 2009, was primarily due to a decrease in revenue receipts for license and collaborative fees and royalties. In the first quarter of 2009, we received $23.2 million related to the expansion of our existing collaboration with Takeda, and recognized royalty revenue from sales of LUCENTIS® and RAPTIVA® of $4.6 million.
Net cash used in investing activities was $0.1 million for the three months ended March 31, 2010, compared with $3.3 million for the same period of 2009. Cash used in investing activities for the three months ended March 31, 2010 consisted of purchases of fixed assets. Net cash used in investing activities of $3.3 million for the three months ended March 31, 2009 primarily consisted of an increase in restricted cash of $4.5 million relating to the receipt of royalties held in a restricted account under our Goldman Sachs term loan facility. This cash outflow was partially offset by proceeds from maturities of investments in the period of $1.3 million.
Net cash provided by financing activities was $21.0 million for the three months ended March 31, 2010, compared with $41,000 for the same period of 2009. Cash provided by financing activities in the first quarter of 2010 related to proceeds received from the issuance of common shares of $25.5 million, partially offset by $4.5 million paid to the holders of warrants issued in June of 2009 upon modification of the terms.
In the third quarter of 2009, we entered into the ATM Agreement, under which we may sell up to 25 million of our common shares from time to time through Wm Smith, as the agent for the offer and sale of the common shares. Wm Smith may sell these common shares by any method permitted by law deemed to be an at the market offering as defined in Rule 415 of the Securities Act of 1933, including but not limited to sales made directly on The NASDAQ Global Market, on any other existing trading market for the common shares or to or through a market maker. Wm Smith may also sell the common shares in privately negotiated transactions, subject to our approval. We pay Wm Smith a commission equal to 3% of the gross proceeds of all common shares sold through it as sales agent under the ATM Agreement but in no event less than $0.02 per share. Shares sold under the ATM Agreement are sold pursuant to a prospectus which forms a part of a registration statement declared effective by the Securities and Exchange Commission on May 29, 2008. From the inception of the ATM Agreement through March 31, 2010, we sold a total of 12,990,842 common shares through Wm Smith for aggregate gross proceeds of $9.3 million, including 8,940,225 common shares sold in the first quarter of 2010 for aggregate gross proceeds of $6.4 million. Total offering expenses related to these sales from inception to March 31, 2010 were $0.3 million.
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