XBIOTECH INC. (NASDAQ:XBIT) Files An 8-K Entry into a Material Definitive Agreement

Item 1.01

On March 3, 2017, XBiotech Inc. (the Company) entered into
subscription agreements with accredited investors (the
Subscription Agreements) providing for the issuance and sale by
the Company of approximately $31 million of common shares in a
registered direct offering. The transaction was completed from
the Companys shelf registration at $13 per share. The closing of
the offering is expected to take place on or about March 8, 2017,
subject to the satisfaction of customary closing conditions.

The Company is offering the shares to a prospectus supplement
dated March 3, 2017, and a prospectus dated September 1, 2016,
which is part of a registration statement on Form S-3
(Registration No. 333-213218) that was declared effective by the
Securities and Exchange Commission on September 1, 2016. The
opinion of Stikeman Elliott LLP relating to the legality of the
shares is filed as Exhibit 5.1 to this Current Report on Form
8-K.

The foregoing summary of the Subscription Agreements does not
purport to be complete and is qualified in its entirety by
reference to the Subscription Agreement, a form of which is
included as Exhibit 10.1 to this Current Report on Form 8-K and
incorporated by reference herein.

Item 7.01 Regulation FD Disclosure.

On March 3, 2017, XBiotech Inc. (the Company) issued a press
release announcing the offering. A copy of the press release
issued in connection with the announcement is furnished as
Exhibit 99.1 to this Current Report on Form 8-K.

This Current Report on Form 8-K shall not constitute an offer to
sell or the solicitation of an offer to buy any shares under the
Offering, nor shall there be any sale of such shares in any state
in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any
such state.

This Form 8-K and the related press release contain
forward-looking statements, including declarations regarding
management’s beliefs and expectations, that involve substantial
risks and uncertainties. In some cases, you can identify
forward-looking statements by terminology such as may, will,
should, would, could, expects, plans, contemplate, anticipates,
believes, estimates, predicts, projects, intend or continue or
the negative of such terms or other comparable terminology,
although not all forward-looking statements contain these
identifying words. Forward-looking statements are subject to
inherent risks and uncertainties in predicting future results and
conditions that could cause the actual results to differ
materially from those projected in these forward-looking
statements. These risks and uncertainties are subject to the
disclosures set forth in Risk Factors in our SEC filings.

(d) Exhibits

About XBIOTECH INC. (NASDAQ:XBIT)

XBiotech Inc. is a clinical-stage biopharmaceutical company. The Company is engaged in discovering and developing True Human monoclonal antibodies for treating a range of diseases. The Company focuses on bringing its lead product candidate, Xilonix (MABp1), to market. The Company has also developed a True Human monoclonal antibody discovery platform and manufacturing system. The Company’s therapeutic antibody Xilonix is being evaluated as a monotherapy to treat advanced stages of colorectal cancer. Xilonix neutralizes a pro-inflammatory protein produced by leukocytes and other cells, interleukin-1 alpha (IL-1a). The Company completed a Phase I and II clinical trial for MABp1 as a treatment for cancer at MD Anderson Cancer Center. The Company is also investigating MABp1 in clinical trials for other indications, including vascular disease, type II diabetes, acne and psoriasis.

XBIOTECH INC. (NASDAQ:XBIT) Recent Trading Information

XBIOTECH INC. (NASDAQ:XBIT) closed its last trading session up +1.01 at 14.80 with 95,738 shares trading hands.