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NEW YORK - Indaptus Therapeutics, Inc. (NASDAQ:INDP), whose stock has declined over 80% in the past year and currently trades at $10.53, announced Tuesday it has raised an additional $3.4 million through the sale of convertible promissory notes and accompanying warrants, bringing its total gross proceeds from the offering to $5.7 million. According to InvestingPro data, the company maintains a strong balance sheet with more cash than debt.
The notes carry a 6% annual interest rate and will mature on July 28, 2026. According to the company’s statement, the notes will convert into common stock at the earlier of 30 days following the effectiveness of a reverse split on Nasdaq or the one-year anniversary of issuance.
The conversion price will be set at 80% of the average Nasdaq closing price for the five trading days preceding and including the conversion date, with a maximum conversion price of $11.20. Warrants to purchase 200% of the conversion shares will be issued following conversion and stockholder approval.
Paulson Investment Company, LLC served as the exclusive placement agent for the offering.
Indaptus, a clinical stage biotechnology company focused on cancer and viral infection treatments, plans to use the proceeds for research and development activities, including funding a Phase 1b/2 clinical trial, as well as for working capital and general corporate purposes.
The securities were offered through a private placement under Section 4(a)(2) of the Securities Act of 1933 and have not been registered under the Securities Act or applicable state securities laws, according to the press release statement.
In other recent news, Indaptus Therapeutics, Inc. announced a one-for-twenty-eight reverse stock split of its common stock, which aims to increase the share price to meet Nasdaq’s listing requirements. This adjustment will reduce the number of outstanding shares from approximately 16 million to 572,000, while the number of authorized shares remains unchanged. Stockholders had previously approved this measure at the company’s annual meeting. Additionally, Indaptus Therapeutics has raised approximately $2.3 million through convertible promissory notes as part of a larger offering targeting up to $5 million. These notes, led by a healthcare-focused institutional investor, bear a 6% annual interest and will mature in 2026. The company plans to use the proceeds to fund research and development activities, including a Phase 1b/2 clinical trial. The transaction was facilitated by Paulson Investment Company, LLC, serving as the exclusive placement agent. Indaptus continues to focus on developing treatments for cancer and viral infections.
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