Indaptus Therapeutics (INDP) said Friday it sold about $2.3 million of convertible promissory notes and accompanying warrants in a private placement.

A health care-focused institutional investor led the transaction in an ongoing offering, in which Indaptus is looking to raise gross proceeds of up to $5 million, the company said.

Indaptus said the notes bear an annual interest rate of 6%, will mature on July 28, 2026 and will convert into common shares, while the warrants to purchase 200% of the conversion shares will be issued after the conversion of the notes and the receipt of stockholder approval.

The company said it plans to use the net proceeds for research and development, including a phase 1b/2 clinical trial, and for working capital and general corporate purposes.

Indaptus shares were 2.7% lower in recent premarket activity.