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NEW YORK - Indaptus Therapeutics, Inc. (NASDAQ:INDP), currently trading at $0.45 per share, announced Wednesday that its Board of Directors has approved a one-for-twenty-eight reverse stock split of its common stock, effective after market close on Thursday. The stock has shown volatile performance, gaining 36.9% in the past week while declining 79.3% over the past year, according to InvestingPro data.
The clinical stage biotechnology company’s shares will begin trading on a split-adjusted basis on the Nasdaq Capital Market on Friday under the same symbol but with a new CUSIP number.
The reverse stock split aims to increase the company’s per share price to regain compliance with Nasdaq’s continued listing requirements and potentially attract institutional investors. Stockholders had previously approved the measure at the company’s annual meeting on June 10.
Following the split, every 28 shares of outstanding common stock will convert to one share, reducing Indaptus’ outstanding shares from approximately 16 million to 572,000. The number of authorized shares will remain unchanged.
No fractional shares will be issued. Instead, stockholders entitled to fractional shares will receive cash payments equal to the fraction multiplied by Thursday’s closing price (adjusted for the split).
Stockholders holding shares in book-entry form or through brokers don’t need to take action. Those with physical certificates will receive exchange instructions from the company’s transfer agent, VStock Transfer.
The reverse stock split comes as Indaptus works to develop treatments for cancer and viral infections. The company’s lead product candidate is Decoy20.
This information is based on a press release statement from Indaptus Therapeutics.
In other recent news, Indaptus Therapeutics has raised approximately $2.3 million through the sale of convertible promissory notes and accompanying warrants. This fundraising effort is part of a larger offering targeting up to $5 million in gross proceeds. The convertible notes, which bear an annual interest rate of 6%, are set to mature on July 28, 2026, and will convert into common stock at 80% of the average closing price for the five trading days preceding the conversion, with a cap set at $0.40. Additionally, warrants to purchase 200% of the conversion shares will be issued following note conversion and stockholder approval, featuring an exercise price equal to the notes’ conversion price and a five-year term. Paulson Investment Company, LLC is acting as the exclusive placement agent for this offering. Indaptus Therapeutics intends to use the funds to support research and development activities, including a Phase 1b/2 clinical trial, as well as for working capital and general corporate purposes. The securities were offered in a private placement under specific regulatory exemptions and have not been registered under the Securities Act or applicable state securities laws.
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