Indaptus Therapeutics raised $5.7 million through the sale of convertible promissory notes and warrants for R&D purposes.
Quiver AI Summary
Indaptus Therapeutics, Inc., a clinical stage biotech company, announced the sale of approximately $3.4 million in convertible promissory notes and warrants, adding to a previous $2.3 million sale, totaling $5.7 million in gross proceeds. The notes carry a 6% interest rate and will mature on July 28, 2026, converting into shares of common stock based on specified conditions. The company plans to use the net proceeds for research and development, including funding a Phase 1b/2 clinical trial, as well as general corporate purposes. The issuance is part of a private placement that is not registered under the Securities Act. The release includes forward-looking statements about future plans and associated risks.
Potential Positives
- Indaptus Therapeutics successfully raised $5.7 million in gross proceeds through the sale of convertible promissory notes and accompanying warrants, providing essential funding for research and development.
- The proceeds will be used to fund a Phase 1b/2 clinical trial, addressing a critical advancement in their pipeline for cancer and viral infection treatments.
- The terms of the convertible notes, including a relatively low interest rate of 6% and a favorable conversion structure, could attract further investor interest and confidence in the company’s future performance.
- The involvement of Paulson Investment Company, LLC as the exclusive placement agent may indicate a strong endorsement and professional support for the company's financial initiatives.
Potential Negatives
- Indaptus Therapeutics is raising funds through convertible promissory notes, indicating potential liquidity issues or a lack of sufficient capital reserves for ongoing operations and research.
- The offering of notes and warrants not registered under the Securities Act may limit the liquidity of these securities and could be viewed negatively by investors.
- The conversion terms suggest a heavy dilution risk for current shareholders, as the notes will convert into common stock, potentially impacting share value adversely.
FAQ
What recent funding did Indaptus Therapeutics secure?
Indaptus Therapeutics raised an aggregate of $5.7 million through the sale of convertible promissory notes and warrants.
What is the interest rate for the convertible notes?
The convertible promissory notes bear an interest rate of 6% per year.
When will the notes mature?
The notes will mature on July 28, 2026.
What will the funds be used for?
Indaptus intends to use the net proceeds for research and development, including a Phase 1b/2 clinical trial.
Are these securities registered with the SEC?
No, the securities have not been registered under the Securities Act and are offered in a private placement.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$INDP Hedge Fund Activity
We have seen 6 institutional investors add shares of $INDP stock to their portfolio, and 8 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- GEODE CAPITAL MANAGEMENT, LLC added 42,849 shares (+52.2%) to their portfolio in Q1 2025, for an estimated $23,562
- INVESTMENT HOUSE LLC added 28,675 shares (+28.6%) to their portfolio in Q1 2025, for an estimated $15,768
- SUSQUEHANNA INTERNATIONAL GROUP, LLP removed 17,829 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $9,804
- TWO SIGMA SECURITIES, LLC removed 16,620 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $9,139
- CITADEL ADVISORS LLC removed 15,390 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $12,959
- VIRTU FINANCIAL LLC added 12,872 shares (+inf%) to their portfolio in Q1 2025, for an estimated $7,078
- UBS GROUP AG removed 2,436 shares (-96.6%) from their portfolio in Q1 2025, for an estimated $1,339
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
NEW YORK, July 01, 2025 (GLOBE NEWSWIRE) -- Indaptus Therapeutics, Inc. (Nasdaq: INDP) (“Indaptus”), a clinical stage biotechnology company dedicated to pioneering innovative cancer and viral infection treatments, today announced the additional sale of approximately $3.4 million in aggregate principal amount of convertible promissory notes and accompanying warrants. Together with a prior sale of $2.3 million of convertible promissory notes and accompanying warrants, the Company raised an aggregate of $5.7 million in gross proceeds in this offering.
The notes bear interest at the rate of 6% per year and will mature on July 28, 2026. The notes will convert, together with accrued interest, into shares of common stock on the date which is the earlier of (i) the date that is 30 days from the effectiveness of a reverse split effected by the Company on Nasdaq, and (ii) the one-year anniversary from the issuance of the notes. The conversion price per share of common stock will be equal to 80% of the average Nasdaq official closing price of the common stock for the five trading days immediately preceding and including the conversion date, subject to a maximum conversion price of $11.20.
Warrants to purchase 200% of the conversion shares will be issued following the conversion of the notes and obtaining stockholder approval. The warrants will have an exercise price equal to the conversion price of the notes and have a term of five years from the date of issuance.
Paulson Investment Company, LLC is acting as the exclusive placement agent in connection with the offering.
Indaptus intends to use the net proceeds from the offering for research and development activities including the funding of a Phase 1b/2 clinical trial as well as for working capital and general corporate purposes.
The securities to be issued in the private placement and shares issuable upon conversion or exercise of such notes and warrants were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and/or Rule 506(c) of Regulation D promulgated thereunder, have not been registered under the Securities Act or applicable state securities laws and may not be reoffered or resold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These include statements regarding anticipated use of the net proceeds. All statements that are not statements of historical facts are, or may be deemed to be, forward-looking statements. Forward-looking statements can be identified by the use of forward-looking words such as “believe”, “expect”, “intend”, “plan”, “may”, “should”, “could”, “might”, “seek”, “target”, “will”, “project”, “forecast”, “continue” or “anticipate” or their negatives or variations of these words or other comparable words or by the fact that these statements do not relate strictly to historical matters. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties that could cause our actual results to differ materially from any future results expressed or implied by the forward-looking statements. Many factors could cause actual activities or results to differ materially from the activities and results anticipated in forward-looking statements, including, but not limited to the following: our limited operating history; conditions and events that raise substantial doubt regarding our ability to continue as going concern; the need for, and our ability to raise, additional capital given our lack of current cash flow; our clinical and preclinical development, which involves a lengthy and expensive process with an uncertain outcome; our incurrence of significant research and development expenses and other operating expenses, which may make it difficult for us to attain profitability; our pursuit of a limited number of research programs, product candidates and specific indications and failure to capitalize on product candidates or indications that may be more profitable or have a greater likelihood of success; our ability to obtain and maintain regulatory approval of any product candidate; the market acceptance of our product candidates; our reliance on third parties to conduct our preclinical studies and clinical trials and perform other tasks; our reliance on third parties for the manufacture of our product candidates during clinical development; our ability to successfully commercialize Decoy20 or any future product candidates; our ability to obtain or maintain coverage and adequate reimbursement for our products; the impact of legislation and healthcare reform measures on our ability to obtain marketing approval for and commercialize Decoy20 and any future product candidates; product candidates of our competitors that may be approved faster, marketed more effectively, and better tolerated than our product candidates; our ability to adequately protect our proprietary or licensed technology in the marketplace; the impact of, and costs of complying with healthcare laws and regulations, and our failure to comply with such laws and regulations; information technology system failures, cyberattacks or deficiencies in our cybersecurity; and unfavorable global economic conditions. These and other important factors discussed under the caption “Risk Factors” included in our most recent Annual Report on Form 10-K filed with the SEC on March 13, 2025, and our other filings with the SEC, could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. All forward-looking statements speak only as of the date of this press release and are expressly qualified in their entirety by the cautionary statements included in this press release. We undertake no obligation to update or revise forward-looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events, except as required by applicable law.
Contact: [email protected]
Investor Relations Contact:
CORE IR
Louie Toma
[email protected]