Why Did Indaptus Therapeutics Surge 64% In After-Hours Trading?

Indaptus Therapeutics Inc. (NASDAQ:INDP) jumped 64.65% to $3.26 in after-hours trading on Tuesday.

Check out the current price of INDP stock here. 

Indaptus disclosed in a Form 8-K filing, which is used to report significant unscheduled corporate changes, that investor David E. Lazar purchased 300,000 shares of Series AA Preferred Stock and 700,000 shares of Series AAA Preferred Stock at $6.00 per share on Monday, generating aggregate gross proceeds of $6 million.

The preferred shares are convertible into 111 million shares of common stock, subject to stockholder approval.

Board Restructuring Completed

The Board also appointed Lazar as Co-Chief Executive Officer.

Lazar currently serves as the CEO and Chairman of Kala Bio Inc. (NASDAQ:KALA). David previously served as Chief Executive Officer of Novabay Pharmaceuticals, Inc. (NASDAQ:NBY).

According to Form 3 filings dated Tuesday, which insiders use to report their initial ownership of a company's securities, Lazar holds derivative securities convertible into 6 million common shares from Series AA Preferred Stock and 105 million shares from Series AAA Preferred Stock.

Avraham Ben-Tzvi, who joined as a director, also reported ownership of 100 common shares held in a Roth Individual Retirement Account in a separate Form 3 filing.

The company also modified employment agreements with Jeffrey Meckler, Michael J. Newman, Nir Sassi, and Walt A. Linscott, providing equity settlements totaling 350,000 common shares and $4.4 million cash in exchange for 10-day notice periods and waived severance benefits.

Stockholder Vote Scheduled

A special meeting will occur by March 31, 2026, to approve preferred conversion, authorize share increase, elect three Lazar designees, permit written consent actions, and authorize a reverse split.

Trading Metrics

The New York-based clinical-stage biotechnology company has a market capitalization of $3.47 million, a 52-week high of $47.60, and a 52-week low of $1.66.

The stock has struggled over the past year, falling 92.04%, reflecting significant challenges. This steep decline suggests that investors should be cautious, as short-term gains may not signal a lasting recovery.

The Relative Strength Index (RSI) of the stock stands at 36.65.

Indaptus is close to its lows as it is currently only 0.7% higher than its 52-week low. This positioning implies that the stock is having trouble gaining traction and could continue to be under selling pressure until a major catalyst appears.

Price Action: INDP closed on Tuesday at $1.98, down 2.46%, according to Benzinga Pro data.

Benzinga’s Edge Stock Rankings indicates INDP stock has a negative price trend across all time frames.  Track the performance of other players in this segment.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.