Indaptus Therapeutics Sells ~$2.3M In Aggregate Principal Amount Of Convertible Promissory Notes And Accompanying Warrants To Raise Up To $5M In Gross Proceeds

Indaptus Therapeutics, Inc. (NASDAQ:INDP) ("Indaptus"), a clinical stage biotechnology company dedicated to pioneering innovative cancer and viral infection treatments, today announced the sale of approximately $2.3 million in aggregate principal amount of convertible promissory notes and accompanying warrants. This transaction is being led by a healthcare-focused institutional investor in an ongoing offering in which the Company is seeking to raise up to $5 million in gross proceeds.

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 $0.40, as adjusted for stock splits and the like.

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.

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.