Indaptus secures $2.1 million through stock and warrants sale

NEW YORK - Indaptus Therapeutics, Inc. (NASDAQ:INDP), a biotech company focusing on cancer and viral infection treatments, has announced agreements for a securities purchase with investors, including an officer of the company. The agreements involve the sale of 1,817,017 shares of common stock and the concurrent private placement of warrants to purchase an equivalent number of shares. The transactions are set at a combined purchase price of $1.175 per share and associated warrant.

The warrants, priced at $1.05 per share, will be immediately exercisable and valid for five years from issuance. The expected closing date of the offering is November 25, 2024, contingent upon customary closing conditions. Paulson Investment Company, LLC is the exclusive placement agent for the offering.

Indaptus anticipates a gross proceed of approximately $2.135 million before deductions for the placement agent’s fees and other related expenses. The net proceeds are earmarked for research and development activities, working capital, and general corporate purposes.

The public offering of common stock was made under a previously filed and effective shelf registration statement. In contrast, the warrants were issued in a private placement under specific securities regulations and are not registered for public sale in the U.S. unless they meet certain regulatory requirements.

This sale comes amid a series of forward-looking statements by Indaptus, highlighting the anticipated use of the net proceeds. However, these statements are subject to various market risks and uncertainties that could impact actual results.

The information reported is based on a press release statement from Indaptus Therapeutics.

In other recent news, Indaptus Therapeutics has made significant strides in its research and development efforts. The biopharmaceutical company recently reported positive results from its Phase 1 trial of Decoy20, an investigational treatment for patients with solid tumors. The data, presented at the American Society of Clinical Oncology (ASCO) Annual Meeting, showed promising immune responses induced by Decoy20. The company also announced a clinical supply agreement with BeiGene (NASDAQ:BGNE) Switzerland GmbH, aiming to advance the evaluation of Decoy20 in combination with BeiGene's anti-PD-1 antibody, tislelizumab.

In addition, Indaptus successfully raised approximately $3 million through the sale of shares and warrants, with Paulson Investment Company, LLC acting as the exclusive placement agent for this transaction. The funds are expected to be allocated towards further research and development activities, general corporate purposes, and working capital.

Furthermore, H.C. Wainwright maintained a Buy rating on Indaptus following the company's announcement regarding its Phase 1 trial of Decoy20. The safety review committee approved unrestricted patient enrollment at the lower Decoy20 dose after reviewing weekly administration data, reinforcing the consistent safety profile of the treatment. These are the recent developments for Indaptus Therapeutics.

InvestingPro Insights

Indaptus Therapeutics' recent securities purchase agreement comes at a challenging time for the company, as reflected in its current financial metrics and market performance. According to InvestingPro data, the company's market capitalization stands at a modest $10.66 million, indicating its small-cap status in the biotech sector.

InvestingPro Tips reveal that Indaptus "holds more cash than debt on its balance sheet" and "liquid assets exceed short term obligations," which could provide some financial flexibility as it seeks to fund its research and development activities. This aligns with the company's stated intention to use the proceeds from the new offering for R&D and working capital.

However, investors should note that Indaptus "suffers from weak gross profit margins" and is "not profitable over the last twelve months." The company's operating income for the last twelve months as of Q3 2023 was -$15.37 million, underscoring the financial challenges it faces. This context makes the recent $2.135 million offering particularly significant for the company's ongoing operations.

The stock's performance has been notably weak, with InvestingPro data showing a -45.21% price return over the past month and a -57.86% return over the last six months. The stock is currently trading near its 52-week low, which may have influenced the timing and pricing of the new share offering.

For investors considering Indaptus, it's worth noting that analysts do not anticipate the company will be profitable this year, according to InvestingPro Tips. This information, along with 7 additional tips and a wealth of financial metrics, is available on InvestingPro, offering a comprehensive view of Indaptus Therapeutics' financial health and market position.

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