Oramed Pharmaceuticals Implements Rights Plan to Protect Shareholders from Hostile Takeovers

Oramed Pharmaceuticals Implements Rights Plan to Shield Stockholders from Hostile Takeovers

Oramed Pharmaceuticals Inc. announces the establishment of a Rights Agreement aimed at safeguarding its stockholders from potential hostile takeover attempts. The plan, which becomes effective immediately, involves issuing a common stock purchase right for each outstanding share, ensuring that shareholders have a mechanism to protect their interests. By distributing these Rights, Oramed empowers its existing shareholders to maintain their equity position and enhance their bargaining power in the event of a takeover bid.

The Rights will become exercisable ten business days following an acquisition of 15% or more of the company's outstanding stock, or if a tender offer is announced for that amount. Shareholders holding the Rights will have the opportunity to purchase additional shares at an initial price of $10.00, which is designed to provide a fair valuation of the company’s stock while mitigating the impact of any aggressive acquisition strategies by outside parties. Importantly, any Rights held by the acquiring entity will be rendered void, ensuring that the interests of existing shareholders are prioritized.

This Rights Plan is a strategic move designed to bolster Oramed's position in the biotechnology sector, where companies often find themselves vulnerable to unsolicited takeover attempts. By proactively implementing this plan, Oramed not only seeks to protect its current shareholders but also signals to the market its commitment to maintaining corporate governance and the integrity of its business operations. The Rights will remain valid for three years from the adoption date, providing a substantial window for the company to navigate any potential challenges while allowing shareholders to benefit from their investment without fear of abrupt dilution or loss of control.

In conjunction with the Rights Agreement, Oramed advises that stockholders of record as of November 27, 2025, will receive the Rights dividend. The company plans to file further details with the U.S. Securities and Exchange Commission through a Form 8-K, ensuring transparency and compliance with regulatory requirements.

This proactive approach underscores Oramed Pharmaceuticals' dedication to its shareholders and highlights its broader strategy within the competitive biopharmaceutical landscape, emphasizing the importance of shareholder rights and protections in an industry marked by rapid innovation and potential volatility.