Indaptus Therapeutics, Inc. Announces Significant Changes in Control Following Preferred Stock Transactions

Key Highlights:

• Major shift in control of Indaptus Therapeutics, Inc. (“the Company”) via preferred stock transaction
• Details of the Securities Purchase Agreement and resulting ownership structure
• Potentially significant impact on share price due to new major shareholders and dilution
• Implications for existing shareholders and future corporate direction

Background

On December 22, 2025, Indaptus Therapeutics, Inc. entered into a Securities Purchase Agreement with David E. Lazar. Under the terms of this agreement, Lazar purchased 300,000 shares of Series AA Convertible Preferred Stock and 700,000 shares of Series AAA Convertible Preferred Stock from the Company. These transactions were subsequently disclosed in a Form 8-K Current Report filed on March 18, 2026.

Details of the Transaction

Each share of Series AA Preferred Stock is convertible into 20 shares of the Company’s common stock, par value \$0.01 per share. The Series AAA Preferred Stock is similarly convertible. Upon full conversion of all Preferred Stock, the total outstanding shares of common stock will increase to 113,242,324.

The table below summarizes the key purchasers, their respective investments, and their resulting ownership stakes after the conversion:

Impact on Company Control

After the conversion of all Series AA and Series AAA Preferred Stock into common shares:

• Yun Yao will own approximately 41,991,000 shares, representing 37.08% of the Company’s outstanding common stock.
• Sino Lion Ventures Limited will hold 38,895,000 shares, or 34.35%.
• Ting Yang will control 11,250,000 shares, or 9.93%.

David E. Lazar, who facilitated the transaction, will own about 1.82% of the Company’s common stock post-conversion. The combined impact of these transactions is a new controlling group, with over 81% of the Company’s common stock held by just three parties.

Potential Price Sensitive Information

• Massive Dilution: The conversion of preferred stock to common stock will significantly dilute existing shareholders. The outstanding shares will increase, reducing the percentage ownership of all current holders not participating in the transaction.
• Change in Control: The new major shareholders (Yun Yao, Sino Lion Ventures Limited, Ting Yang) will collectively control a majority of the voting power. This could lead to changes in strategic direction, management, or corporate actions, all of which are highly price sensitive.
• Governance Implications: With this concentration of ownership, minority shareholder influence will be greatly diminished.

Other Regulatory Details

• The Company’s common stock is traded on the NASDAQ Capital Market under the symbol INDP.
• The Company is not an Emerging Growth Company as defined under SEC rules.
• No written communications, soliciting material, or pre-commencement tender offers are associated with this filing.

Conclusion

This transaction represents a fundamental shift in the ownership and control of Indaptus Therapeutics, Inc. The significant dilution and concentration of ownership are likely to impact the Company’s stock price and may prompt changes in strategic direction. Existing shareholders should closely monitor further disclosures from the Company regarding management, future plans, and any additional corporate actions.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should perform their own due diligence or consult a financial advisor before making investment decisions. The information presented here is based solely on the official filings provided by Indaptus Therapeutics, Inc. and may be subject to change.

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