Indaptus Therapeutics (INDP) said Wednesday it has entered a standby equity purchase agreement with YA II PN, or Yorkville.

Under the deal, the company can sell up to $20 million worth of its common stock to Yorkville over the next 36 months but is not obligated to do so. The company also issued 305,960 common shares to Yorkville as a commitment for Yorkville to purchase these shares, according to a filing.

Indaptus said it cannot sell more than about 2.8 million shares without shareholder approval or unless the average price per share is at least $0.82. Additionally, Yorkville can't own more than 9.99% of the company's voting shares.

Before any shares can be sold, the company is required to file a registration statement with the US Securities and Exchange Commission for the shares involved in this agreement.

The agreement replaces the previous purchase agreement the company had with Lincoln Park Capital Fund, which was terminated on Wednesday, it said.

Shares of Indaptus Therapeutics fell past 2% in recent trading.

Price: 0.80, Change: -0.02, Percent Change: -2.44