Oramed declares dividend distribution of common stock purchase rights

Oramed (ORMP) has unanimously adopted a Rights Agreement dated November 17 by and between the company and its rights agent, and declared a dividend of one common stock purchase right – a “Right” – on each outstanding share of its common stock, par value 1.2c per share, of the company. Each Right will initially entitle stockholders to buy one share of Common Stock at a purchase price of $10.00, in the event the Rights become exercisable. In general, the Rights will become exercisable ten business days after a person or group becomes the beneficial owner of 15% or more of the outstanding Common Stock or announces a tender offer for 15% or more of the outstanding Common Stock. In the event that the Rights become exercisable due to the triggering ownership threshold being crossed, each Right will entitle its holder to purchase, at the Right’s exercise price, a number of shares of common stock with an aggregate value equal to twice the Right’s exercise price Rights held by the triggering person will become void and will not be exercisable to purchase shares at the reduced purchase price. The dividend distribution will be payable on November 27 to stockholders of record as of the close of business on November 27. The Rights will expire three years after the date of adoption of the Rights Plan unless the Rights are earlier redeemed or exchanged or terminated by the company.