cashless

The business model is a mirage so the right to acquire shares in the business model is the second derivative of a mirage.

What is the value of 75,000 shares in a mirage? 

Mr Kevin Rakin the Independent Chairman of Oramed (ORMP) exercised rights to roughly 75,000 shares at about $6.00 a share, surrendered 22,000 shares, sold 20,000 shares at $20, and holds the balance. 

The shares were received as stock option grants over time plus restricted stock units that were recently vested.  The bean counters explain that the tax to be paid on the sales depends on how long after the vesting the stock was sold.  If the waiting period was not long enough the sales would be taxed at the rate of ordinary income.

Mr Rakin did not pay for the options rather opted for a cashless exercise, a short-term loan from a broker to buy the shares from ORMP repaid from the immediate sale into the market.  

The math on the sale. The broker loans Mr Rakin $6 a share that is paid to ORMP.  Mr Rakin immediately sells 20,000 shares at $20 making $14 a share.  The broker is repaid the loan. The public buys the shares from the broker at $20. The IRS is in line for some of the $14.

But not sure how the surrender part works. 

Is it that the surrendered shares never leave ORMP treasury or are exercised and returned, at what price, and at what benefit to ORMP?

And why is Mr Rakin in such a hurry to sell shares in a business that promises a pill for Covid 19 to be delivered in the mail?