Why Did INDP Stock Gain 12% Today?

• Each Series AA share can convert into 20 common shares, while Series AAA shares can convert into 150.
• Alongside the investment, David E. Lazar has been named Co-Chief Executive Officer and Chairman of the Board.
• The company plans to use the funds raised from the offering to support daily operations, cover severance, and manage general corporate needs. 

Indaptus Therapeutics Inc. (INDP) announced on Monday that it has secured a $6 million investment through the sale of non-voting convertible preferred stock to investor David E. Lazar.

Following the announcement, Indaptus’ stock traded over 12% higher. However, on Stocktwits, retail sentiment around the stock changed to ‘bearish’ from ‘extremely bearish’ territory the previous day amid ‘extremely low’ message volume levels. 

Transaction Details 

The investment, finalized on December 23, includes 300,000 Series AA preferred shares and 700,000 Series AAA preferred shares. Each Series AA share can convert into 20 common shares, while Series AAA shares can convert into 150, pending stockholder approval expected in the first-quarter (Q1) 2026.

"In making this significant investment in Indaptus, I look forward to continuing to evaluate the company’s lead product candidate while actively exploring strategic opportunities to drive value for our stockholders.”

-David E. Lazar, Investor

Alongside the investment, David E. Lazar has been named Co-Chief Executive Officer and Chairman of the Board. Once stockholder approval is received, Lazar can nominate up to three additional directors.

Strategic Implications

The company plans to use the funds raised from the offering to support daily operations, cover severance, manage general corporate and working capital needs, and pay offering-related costs, including securing stockholder approval.

Indaptus develops Decoy, a patented, antigen-agnostic immunotherapy using attenuated Gram-negative bacteria to activate innate and adaptive immune responses. Preclinical studies show tumor and viral eradication, enhanced by combinations with checkpoint inhibitors or chemotherapy.

Indaptus’ Decoy platform activates and matures multiple human immune cells in vitro, exhibits low toxicity upon intravenous administration, and demonstrates promising single-agent activity against chronic hepatitis B and HIV in preclinical studies.

INDP stock has declined by over 90% year-to-date. 

Also See: SoftBank Acquires DigitalBridge For $4 Billion To Scale AI Infrastructure

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