NEW YORK - Indaptus Therapeutics, Inc. (NASDAQ:INDP), a biotech firm focusing on cancer and viral infection treatments, has announced a new funding round through the sale of shares and warrants.
The company has entered into agreements with investors for the sale of 1,643,837 shares of common stock, alongside unregistered warrants to purchase an equivalent number of shares. This combined sale is set at an effective purchase price of $1.825 per share and warrant.
The warrants, priced at $1.70 per share, are exercisable immediately and will remain valid for a term of five years from the date of issuance. The offering's closing is anticipated for tomorrow, subject to the usual closing conditions. Paulson Investment Company, LLC is the exclusive placement agent for this transaction.
Indaptus expects to raise approximately $3 million in gross proceeds before deductions for fees and other expenses related to the offering. The company plans to allocate the net proceeds towards research and development activities, as well as general corporate purposes and working capital.
The shares of common stock were offered pursuant to a previously filed and SEC-effective shelf registration statement. Details regarding the offering can be found in the final prospectus supplement and accompanying base prospectus, which will be filed with the SEC.
The private placement warrants and any shares issued upon their exercise have not been registered under the Securities Act or state securities laws. They may not be offered or sold in the United States absent registration or an exemption from registration requirements.
This press release contains forward-looking statements, including those regarding the anticipated proceeds and intended use of funds. These statements are subject to risks and uncertainties that could cause actual results to differ from projected outcomes. The information presented is based on a press release statement from Indaptus Therapeutics, Inc.
In other recent news, biotechnology firm Indaptus Therapeutics reported positive results from its Phase 1 clinical 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 that Decoy20 was mostly cleared from the bloodstream within two hours post-dose and induced significant immune responses. The adverse events reported were generally low-grade and transient.
Dr. Roger Waltzman, Chief Medical Officer of Indaptus, stated that these results suggest Decoy20 could potentially improve the immune response against cancer and expand treatment options for patients with advanced solid tumors. The study has treated eleven patients thus far, with manageable side effects and consistent immune responses observed across different dosing levels.
CEO of Indaptus, Jeffrey Meckler, expressed confidence in the trial's progress, anticipating that the multi-dosing segment of the study will continue to demonstrate immune responses consistent with potential anti-tumor activity. Further updates on the trial are expected within the year. These are among the recent developments for Indaptus Therapeutics.
InvestingPro Insights
As Indaptus Therapeutics, Inc. (NASDAQ:INDP) embarks on its latest funding round, investors are closely monitoring the company's financial health and stock performance. According to InvestingPro data, Indaptus has a market capitalization of approximately $14.52 million. The company's stock has experienced volatility, with a significant decline of 23.08% over the last month and a 16.65% drop in the past week alone. This is reflective of the broader challenges faced by the biotech sector and could be indicative of market sentiment toward the company's prospects.
InvestingPro Tips highlight that Indaptus holds more cash than debt on its balance sheet, which may provide some financial flexibility in the near term. However, the company's stock is currently in oversold territory according to the Relative Strength Index (RSI), suggesting that the recent sell-off may have been overdone and that there could be potential for a rebound if market conditions stabilize. It's important to note that analysts are not expecting the company to be profitable this year, which could be a factor weighing on the stock price.
For investors seeking a more in-depth analysis, there are additional InvestingPro Tips available, which can be found at https://www.investing.com/pro/INDP. These tips could provide valuable insights into Indaptus's financial position and future outlook, helping investors make more informed decisions.
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