Oramed Pharmaceuticals Announces New Rights Agreement and Shareholder Dividend Distribution

Oramed Pharmaceuticals Unveils Rights Agreement and Dividend Distribution

Oramed Pharmaceuticals Inc., a pioneering company in oral drug delivery technologies, has made a significant announcement regarding its shareholders. On November 17, 2025, the Board of Directors enacted a Rights Agreement with Continental Stock Transfer & Trust Company as the rights agent. This agreement is part of a strategic move to protect the interests of the shareholders by offering a unique form of security known as a common stock purchase right.

Understanding the Rights Agreement

Under this newly adopted Rights Plan, each shareholder of Oramed will receive one right for every share they own. These rights are designed to offer a protective measure against hostile takeover attempts, ensuring that all stockholders receive fair treatment in such scenarios. The principal aim of this plan is to prevent any individual or group from acquiring control of Oramed without adequately compensating all shareholders.

Each right provides its holder the option to purchase shares of common stock at an initial price of $10.00, but this could change based on certain conditions outlined in the Rights Plan. The rights will be exercisable if any person or group amasses 15% or more of the common stock or announces a tender offer that meets or exceeds this threshold.

Once the rights become exercisable, a holder can obtain shares at a value equivalent to double the initial exercise price. However, rights held by a triggering party who surpasses the 15% ownership threshold will become void, effectively keeping them from benefiting from these provisions. Additionally, after the rights are triggered, the Board has the power to exchange them for shares of common stock, offering a potentially favorable outcome for the majority of shareholders.

Tax Implications and Shareholder Benefits

This dividend distribution is set to take effect on November 27, 2025, with shareholders of record entitled to participate as of the close of business on that date. A key point to note is that the rights distribution will not incur any tax obligations for the shareholders, making it an attractive benefit. The rights granted under this agreement are set to remain valid for a period of three years unless terminated or redeemed sooner by the company.

Oramed Pharmaceuticals: Innovating Oral Drug Delivery

Founded with the mission to revolutionize drug administration, Oramed Pharmaceuticals focuses on oral delivery solutions that traditionally require injections. Their innovative Protein Oral Delivery technology is a testament to their commitment to enhancing drug absorption while ensuring the integrity of pharmaceuticals.

As the healthcare landscape evolves, Oramed’s initiatives, including this Rights Agreement, signify their proactive approach to safeguarding shareholder interests and navigating potential acquisition threats. The company's focus on maintaining transparent and equitable practices places them in a favorable position within the biotechnology space.

Forward-looking statements included in this release illuminate the company's anticipated outcomes regarding its Rights Plan and its integral role in the overall strategy to bolster shareholder confidence. Oramed plans to provide further details through a Form 8-K filing with the U.S. Securities and Exchange Commission shortly.

In conclusion, Oramed Pharmaceuticals Inc. is securing its future and that of its shareholders with this new Rights Agreement, reinforcing its position as an innovator in oral drug delivery.

For more information on Oramed Pharmaceuticals and its growing portfolio, visit Oramed's official site.