Indaptus Therapeutics raises $2.3 million through convertible notes

Published 13/06/2025, 13:06
Indaptus Therapeutics raises $2.3 million through convertible notes

NEW YORK - Indaptus Therapeutics, Inc. (NASDAQ:INDP), currently trading near its 52-week low of $0.31 and down over 86% in the past year according to InvestingPro data, announced today it has sold approximately $2.3 million in convertible promissory notes and accompanying warrants as part of an ongoing offering targeting up to $5 million in gross proceeds.

The transaction, led by a healthcare-focused institutional investor, includes notes bearing 6% annual interest that will mature on July 28, 2026. The notes will convert into common stock at 80% of the average closing price for the five trading days preceding conversion, with a maximum conversion price of $0.40. This financing comes as InvestingPro data shows the company maintains a healthy balance sheet with more cash than debt, though it currently carries a weak overall financial health score.

Warrants to purchase 200% of the conversion shares will be issued following note conversion and stockholder approval. These warrants will have an exercise price equal to the notes’ conversion price and a five-year term.

Paulson Investment Company, LLC is serving as the exclusive placement agent for the offering.

Indaptus plans to use the net proceeds to fund 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 Section 4(a)(2) of the Securities Act of 1933 and/or Rule 506(c) of Regulation D and have not been registered under the Securities Act or applicable state securities laws.

Indaptus Therapeutics is a clinical stage biotechnology company focused on developing treatments for cancer and viral infections, according to the company’s press release statement. With a market capitalization of just $5.44 million and significant year-to-date stock price decline, investors seeking deeper insights into the company’s financials and growth prospects can access additional analysis through InvestingPro, which offers 8 more exclusive tips and comprehensive financial metrics.

In other recent news, Indaptus Therapeutics, Inc. has shared promising updates from its ongoing clinical trials for Decoy20, a novel cancer immunotherapy agent. The company reported new pharmacodynamic findings from its Phase 1 trial, indicating that Decoy20 is generally well-tolerated and has led to immune cell trafficking, an essential process for an effective anticancer immune response. More than 20 patients have been enrolled in the weekly dosing cohort, with initial data suggesting a favorable safety profile at a 30 million cell dose and some patients showing stable disease. Additionally, Indaptus has initiated a new arm of its Phase 1b/2 clinical trial to evaluate Decoy20 in combination with BeiGene’s PD-1 checkpoint inhibitor, tislelizumab, focusing on safety and preliminary anti-tumor activity. The combination trial aims to optimize dosing and observe early signs of efficacy in patients with advanced solid tumors. Indaptus’s approach involves using single strains of attenuated and killed non-pathogenic Gram-negative bacteria to activate both innate and adaptive immune cells. This strategy potentially enhances the effectiveness of existing cancer treatments and has shown potential in preclinical models against various cancers. The company remains focused on advancing its Decoy platform and exploring the synergistic effects of combining Decoy20 with checkpoint inhibitors.

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