Oramed Pharmaceuticals Extends Maturity Date of Senior Secured Promissory Note in Recent Amendment

Oramed Pharmaceuticals Inc. (NASDAQ:ORMP) recently announced that it has extended the maturity date of its Tranche A Note through an amendment dated January 21, 2025. The Tranche A Note, originally issued to the company by Scilex Holding Company (“Scilex”) as part of a prior Securities Purchase Agreement, is now due to mature on December 31, 2025.

As per the details of the amendment, Scilex, Oramed Pharmaceuticals, and SCLX Stock Acquisition JV LLC agreed to extend the maturity date and continue accruing interest payable until the Extended Maturity Date. In return for the extension, SCLX JV will transfer 3,250,000 shares of Scilex common stock to Oramed Pharmaceuticals.

Additionally, the parties amended the definition of “Cash Sweep Financing” in the Tranche A Note and introduced a new covenant preventing any increase in compensation or additional incentive equity awards to officers, directors, or senior management of Scilex or its subsidiaries while the Tranche A Note remains outstanding. The agreement also allows for prepayments to be waived at the Company’s discretion under certain circumstances.

The amendment aims to provide flexibility to the involved parties and ensure the timely fulfillment of financial obligations while aligning with the business objectives of Oramed Pharmaceuticals. The full text of the Amendment to Senior Secured Promissory Note can be accessed through the Company’s official filings.

The financial markets will be closely watching how this amendment impacts the ongoing operations and financial health of Oramed Pharmaceuticals moving forward.

This press release contains forward-looking statements that involve risks and uncertainties. Actual outcomes may differ materially from those indicated by such statements due to various factors, as detailed in the Company’s filings with the Securities and Exchange Commission. The Company disclaims any obligation to update or revise any forward-looking statements based on new information or future events.

Investors and stakeholders can expect further information and insights regarding this development at upcoming investor events and financial disclosures by Oramed Pharmaceuticals.

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.

About Oramed Pharmaceuticals

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.