Oramed Pharmaceuticals Reports Deferral and Consent Agreement for Tranche B Senior Secured Convertible Note

Oramed Pharmaceuticals Inc. (NASDAQ: ORMP) recently announced its entry into a material definitive agreement involving a Tranche B Senior Secured Convertible Note with Scilex Holding Company and other noted investors. This agreement, dated October 8, 2024, involves obligations amounting to $50,000,000, with Scilex being required to make a First Amortization Payment as of January 2, 2025.

On January 2, 2025, Oramed Pharmaceuticals and the other Tranche B Noteholders signed deferral and consent letters with Scilex, delaying the First Amortization Payment until January 31, 2025. As part of this agreement, SCLX Stock Acquisition JV agreed to offer an aggregate of 5,000,000 shares of common stock, with 2,500,000 of these shares destined for Oramed Pharmaceuticals.

Furthermore, an additional extension was agreed upon that defers the First Amortization Payment until October 8, 2026, as long as certain conditions specified in the Term Sheet are met. This Term Sheet also outlines a 10-year, 4% royalty for the Tranche B Noteholders on specified product sales, among other provisions.

The agreement is contingent upon various closing conditions, including Scilex extending the maturity of its obligations under a Senior Secured Promissory Note issued to Oramed Pharmaceuticals in 2023, with an agreed-upon final payment date of December 31, 2025.

Interested parties can obtain the complete agreement regarding the Oramed Consent in Exhibit 10.1 of the Form 8-K filing, accessible through the Securities and Exchange Commission’s EDGAR database.

It is important to note that this summary does not encompass all aspects of the agreement, and for full details, referencing the original document is recommended.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Oramed Pharmaceuticals’s 8K filing here.

Oramed Pharmaceuticals Company Profile

Oramed Pharmaceuticals Inc engages in the research and development of pharmaceutical solutions for the treatment of diabetes and for the use of orally ingestible capsules for delivery of polypeptides. The company's product portfolio includes ORMD-0801, an oral insulin capsule, which is in phase III clinical trial for the treatment of individuals with diabetes, as well as in phase II clinical trial for the treatment of non-alcoholic steatohepatitis; and ORA-D-013-1 and ORA-D-013-2, which have completed phase II clinical trial for the treatment of type 2 diabetes.