Oramed Pharmaceuticals (NASDAQ:ORMP) Receives Additional Payment on Tranche A Note, Repaying $80.2 Million of Principal

Oramed Pharmaceuticals Inc. recently announced the receipt of an additional payment amounting to approximately $1,000,000 on October 24, 2024. This payment stems from the terms of the Tranche A Note, which mandates mandatory prepayments of 70% of the net cash proceeds received by Scilex from any debt or equity financings, subject to specific conditions and exceptions. Following this payment, a total of $80,200,000 of the original principal under the Tranche A Note has been repaid or refinanced, a significant milestone for the company.

The repayment or refinancing of the principal amount under the Tranche A Note was disclosed as part of previous transactions. On September 21, 2023, Oramed Pharmaceuticals entered into and concluded the transactions outlined in a Securities Purchase Agreement (the “Scilex SPA”) with Scilex Holding Company and Acquiom Agency Services LLC. This agreement involved Scilex assuming some outstanding obligations of Sorrento Therapeutics, Inc. and issuing a Senior Secured Promissory Note to Oramed Pharmaceuticals, among other warrants and agreements.

Additionally, on October 7, 2024, Oramed Pharmaceuticals engaged in another significant transaction. The company entered into a Securities Purchase Agreement (the “2024 SPA”) with institutional investors and Scilex to refinance a portion of the Tranche A Note and settle certain other debts of Scilex. As part of this agreement, new tranche B senior secured convertible notes of Scilex and warrants to purchase shares of Scilex’s common stock were issued to both Oramed Pharmaceuticals and the investors.

The reimbursement received on October 24, 2024, further solidifies Oramed Pharmaceuticals’ ongoing efforts to manage its financial obligations and strengthen its financial position. Details of these transactions and repayments have been clearly outlined in the company’s recent SEC filing, providing transparency to investors and stakeholders regarding the company’s financial activities and progress.

These developments mark significant strides in Oramed Pharmaceuticals’ financial journey, showcasing its commitment to meeting obligations and managing its financial commitments efficiently. As the company continues to navigate its financial landscape and make strategic decisions, stakeholders will be closely monitoring future announcements and disclosures to gauge the company’s financial health and trajectory in the market.

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.