Oramed Pharmaceuticals Announces Restructuring of Scilex Holding Company Debt
Oramed Pharmaceuticals (ORMP) announced a restructuring of its debt with Scilex Holding Company (SCLX). Key points:
- Oramed agreed to restructure $22.5 million of Scilex's existing Senior Secured Promissory Note
- In exchange, Oramed receives a $25 million convertible note with 5.5% interest, warrants for 3.75 million Scilex shares, and $12.5 million repayment
- Oramed and other investors will acquire rights to an 8% royalty on net sales of certain Scilex products, including ZTlido
- The restructuring extends part of the payment schedule but offers potential upside through warrants and conversion options
CEO Nadav Kidron stated the restructuring enhances the potential value of Oramed's investment in Scilex while aligning with their strategy to maximize shareholder value.
Oramed Pharmaceuticals (ORMP) ha annunciato una ristrutturazione del suo debito con Scilex Holding Company (SCLX). Punti chiave:
- Oramed ha concordato di ristrutturare 22,5 milioni di dollari della nota promissoria senior garantita esistente di Scilex
- In cambio, Oramed riceve una nota convertibile da 25 milioni di dollari con un interesse del 5,5%, diritti per 3,75 milioni di azioni di Scilex e un rimborso di 12,5 milioni di dollari
- Oramed e altri investitori acquisiranno diritti a una royalty dell'8% sulle vendite nette di alcuni prodotti di Scilex, incluso ZTlido
- La ristrutturazione estende parte del programma di pagamento ma offre un potenziale guadagno attraverso i diritti di acquisto e le opzioni di conversione
Il CEO Nadav Kidron ha dichiarato che la ristrutturazione aumenta il valore potenziale dell'investimento di Oramed in Scilex, allineandosi alla loro strategia per massimizzare il valore per gli azionisti.
Oramed Pharmaceuticals (ORMP) anunció una reestructuración de su deuda con Scilex Holding Company (SCLX). Puntos clave:
- Oramed acordó reestructurar 22,5 millones de dólares de la nota promissoria sénior garantizada existente de Scilex
- A cambio, Oramed recibe una nota convertible de 25 millones de dólares con un interés del 5,5%, derechos sobre 3,75 millones de acciones de Scilex y un reembolso de 12,5 millones de dólares
- Oramed y otros inversionistas adquirirán derechos a una regalía del 8% sobre las ventas netas de ciertos productos de Scilex, incluyendo ZTlido
- La reestructuración extiende parte del calendario de pagos, pero ofrece un potencial de ganancia a través de derechos de compra y opciones de conversión
El CEO Nadav Kidron declaró que la reestructuración mejora el valor potencial de la inversión de Oramed en Scilex, alineándose con su estrategia para maximizar el valor para los accionistas.
오라메드 제약(ORMP)은 스킬렉스 홀딩 컴퍼니(SCLX)와의 부채 구조 조정을 발표했습니다. 핵심 사항:
- 오라메드는 스킬렉스의 기존 선순위 담보 약속어음 2,250만 달러를 재구성하기로 합의했습니다.
- 이를 대가로 오라메드는 2,500만 달러의 전환 가능한 어음과 5.5%의 이자, 375만 스킬렉스 주식에 대한 우선권 및 1,250만 달러의 상환을 받습니다.
- 오라메드와 다른 투자자는 ZTlido를 포함한 일부 스킬렉스 제품의 순판매에 대한 8%의 로열티 권리를 취득합니다.
- 이번 구조 조정은 일부 상환 일정의 연장을 제공하지만, 우선권 및 전환 옵션을 통해 잠재적인 이익을 제공합니다.
CEO 나다브 키드론은 이번 재구성이 오라메드의 스킬렉스 투자 가치 잠재력을 높이며, 주주 가치를 극대화하는 전략과 일치한다고 밝혔습니다.
Oramed Pharmaceuticals (ORMP) a annoncé une restructuration de sa dette avec Scilex Holding Company (SCLX). Points clés:
- Oramed a accepté de restructurer 22,5 millions de dollars de l'obligation à ordre senior garantie existante de Scilex
- En échange, Oramed reçoit une obligation convertible de 25 millions de dollars avec un intérêt de 5,5%, des bons pour 3,75 millions d'actions Scilex, et un remboursement de 12,5 millions de dollars
- Oramed et d'autres investisseurs acquerront des droits à une redevance de 8% sur les ventes nettes de certains produits Scilex, y compris ZTlido
- La restructuration prolonge une partie du calendrier de paiement, mais offre un potentiel de gain grâce aux bons et aux options de conversion
Le PDG Nadav Kidron a déclaré que la restructuration améliore la valeur potentielle de l'investissement d'Oramed dans Scilex tout en s'alignant sur leur stratégie de maximisation de la valeur pour les actionnaires.
Oramed Pharmaceuticals (ORMP) kündigte eine Umstrukturierung ihrer Schulden mit der Scilex Holding Company (SCLX) an. Wichtige Punkte:
- Oramed stimmte zu, 22,5 Millionen Dollar der bestehenden gesicherten Schuldverschreibung von Scilex umzustrukturieren
- Im Gegenzug erhält Oramed eine wandelbare Schuldverschreibung über 25 Millionen Dollar mit 5,5% Zinsen, Warrants für 3,75 Millionen Scilex-Aktien und eine Rückzahlung von 12,5 Millionen Dollar
- Oramed und andere Investoren erwerben Rechte an einer 8%igen Lizenzgebühr auf den Nettoverkauf bestimmter Scilex-Produkte, einschließlich ZTlido
- Die Umstrukturierung verlängert einen Teil des Zahlungsplans, bietet jedoch potenzielle Aufwärtsgewinne durch Warrants und Wandlungsoptionen
CEO Nadav Kidron erklärte, dass die Umstrukturierung den potenziellen Wert von Orameds Investition in Scilex erhöht und mit ihrer Strategie zur Maximierung des Aktionärswertes übereinstimmt.
- Restructuring of $22.5 million debt provides Oramed with a $25 million convertible note at 5.5% interest
- Oramed receives warrants to purchase 3.75 million Scilex shares
- Immediate $12.5 million repayment from Scilex
- Acquisition of rights to 8% royalty on net sales of certain Scilex products, including ZTlido
- Potential for increased value through warrants and conversion options
- Extension of payment schedule for a portion of Scilex's debt
- Reduction of $2.5 million in outstanding principal balance to acquire royalty rights
Insights
This restructuring deal between Oramed Pharmaceuticals and Scilex Holding Company is a significant financial maneuver that could have positive implications for Oramed. Here's a breakdown of the key points:
- Oramed is restructuring
$22.5 million of Scilex's debt, originally due between September 2024 and March 2025. - In return, Oramed receives a
$25 million convertible note with a5.5% interest rate, convertible at$1.09 per share. - Oramed also gets warrants for 3.75 million Scilex shares at
$1.09 per share, exercisable for 5 years. - An immediate
$12.5 million repayment from the new financing. - Potential 4% royalty stake in Scilex's product sales, including ZTlido.
This deal provides Oramed with improved liquidity and potential upside through equity conversion and royalties. The extended maturity and immediate partial repayment enhance Oramed's cash position. The warrants and conversion option offer significant upside if Scilex's stock price appreciates. The royalty agreement on ZTlido sales could provide a steady revenue stream. Overall, this restructuring appears to be a strategic move to optimize Oramed's investment in Scilex while maintaining exposure to its growth potential.
Key Highlights:
Oramed, affiliates of Murchinson and 3i LP, entered into definitive agreements with Scilex for the purchase and sale of new tranche B senior secured convertible notes ("Notes") in the aggregate principal amount of
Oramed has agreed to restructure
- A Note having an aggregate principal amount of
$25 million 10.0% , that bears interest at a rate of5.5% per annum, is convertible into shares of Scilex common stock at the option of holder at a conversion price equal to$1.09 - Warrants to purchase up to 3.75 million shares of Scilex common stock with an exercise price of
$1.09 - the application by Silex at closing of
$12.5 million
In order to facilitate the ongoing negotiation of the New Financing, Oramed agreed to further extend certain payments due from Scilex under the Senior Secured Promissory Note on September 23, 2024 to October 7, 2024. The closing of the New Financing is expected to occur on or about October 7, 2024, subject to satisfaction of certain closing conditions. After giving effect to these transactions, an aggregate of
Separately, Oramed and certain other institutional investors anticipate acquiring the right to receive an
"We believe that this restructuring significantly enhances the potential value of our investment in Scilex," said Nadav Kidron, CEO of Oramed Pharmaceuticals. "While slightly extending the payment schedule of a portion of our investment, it offers us substantial potential upside, including through warrants and conversion options. We are also excited to have a stake in the growth and prospects of ZTlido. This aligns perfectly with our strategy of maximizing value for our shareholders while supporting innovative healthcare solutions."
About Oramed Pharmaceuticals
Oramed Pharmaceuticals (Nasdaq/TASE: ORMP) is a platform technology pioneer in the field of oral delivery solutions for drugs currently delivered via injection. The Company's novel Protein Oral Delivery (POD™) technology is designed to protect drug integrity and increase absorption. Oramed has offices in
Forward-looking statements: This press release contains forward-looking statements, which may generally be identified by the use of the words "anticipates," "expects," "intends," "plans," "should," "could," "would," "may," "will," "believes," "estimates," "potential," "target," or "continue" and variations or similar expressions and include statements about the completion of the New Financing and royalty transaction, the satisfaction of customary closing conditions related to the New Financing, the benefits and value of the New Financing, the royalty transaction and related transactions with Scilex, the value of Scilex's securities, its growth trajectory, commercial portfolio and infrastructure and clinical stage pipeline. These statements are based upon the current expectations and beliefs of management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties discussed in the Company's most recent annual or quarterly report and detailed from time to time in the Company's other filings with the Securities and Exchange Commission, which factors are incorporated herein by reference and the following factors: risks that the New Financing and royalty transaction do not close; the risk that Scilex may be unable to service the debt provided by the Note and the existing Senior Secured Promissory Note and the impact of the New Financing's obligations on Scilex's liquidity; risks associated with the Company's ability to recover the proceeds and/or collateral under the Note, the existing Senior Secured Promissory Note and related agreements; the possibility that the anticipated benefits of the transactions with Scilex are not realized when expected or at all, including as a result of the impact of, or problems arising from, the ability of Scilex to repay the indebtedness and the ability of the Company to realize the value of the warrants and Notes; risks associated with the fluctuating market price and liquidity of the Scilex common stock underlying the warrants and Notes; and risks associated with the unpredictability of trading markets, all of which could cause the actual results or performance of Oramed to differ materially from those contemplated in such forward-looking statements. These forward-looking statements speak only as of the date hereof. Oramed undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date hereof or to reflect actual outcomes, unless required by law.
Company Contact:
+1-844-9-ORAMED
ir@oramed.com
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SOURCE Oramed Pharmaceuticals Inc.
FAQ
What are the key terms of Oramed's debt restructuring with Scilex?
How does the restructuring affect Oramed's investment in Scilex (SCLX)?
What royalty rights did Oramed (ORMP) acquire in the Scilex deal?
When is the closing of the new financing with Scilex expected to occur?
