Incannex Healthcare Secures $3.3 Million Convertible Debenture with Arena Special Opportunities

Incannex Healthcare Inc. (NASDAQ:IXHL) recently announced the successful completion of a closing for a secured convertible debenture with Arena Special Opportunities (Offshore) Master II LP (“Arena”). The debenture, issued on October 17, 2024, totals $3,333,333 with a 10% original issue discount and a payment-in-kind interest rate of 5%. It is set to mature on April 14, 2026.

Following the issuance, Incannex Healthcare received net proceeds amounting to $2,877,588 million after expenses reimbursable to Arena were deducted. These funds are earmarked for advancing the development of the company’s three key assets, facilitating further progress in their research and development pipeline. Additionally, the financial infusion will provide essential working capital to underpin the company’s operational expansion and strategic initiatives.

Further details regarding this recent development, including information on unregistered sales of equity securities issued concurrently, are available in the company’s related filings with the Securities and Exchange Commission. The conversion price of the debenture equates to $1.84 per share of common stock, subject to adjustments as outlined in the terms of the debenture.

In connection with the debenture issuance, Incannex Healthcare also issued a warrant to Arena. This warrant allows the conversion of 453,749 shares of the company’s common stock at an exercise price set at 115% of the closing price of the common stock shares on Nasdaq as of October 14, 2024. The issuance of this warrant falls under an exemption specified in Section 4(a)(2) of the Securities Act of 1933.

As part of the regulatory requirements, the company is obligated to file a registration statement to register the shares of common stock underlying both the debenture and the warrant. This step is crucial in maintaining compliance with securities regulations.

The company has also provided relevant information in its Form 8-K filing, dated September 10, 2024, which sheds more light on the recent financial transactions undertaken. Investors and stakeholders are encouraged to review these filings for a comprehensive understanding of the recent activities within Incannex Healthcare.

In adherence to the provisions of the Securities Exchange Act of 1934, the report related to the transaction was duly authorized and signed by Joel Latham, the Chief Executive Officer and President of Incannex Healthcare Inc., as of October 21, 2024.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Incannex Healthcare’s 8K filing here.

Incannex Healthcare Company Profile

Incannex Healthcare Inc, a clinical stage pharmaceutical development company, engages in the research, development, and sale of medicinal cannabinoid and psychedelic pharmaceutical products and therapies. It develops products for the treatment of obstructive sleep apnoea (OSA), traumatic brain injury (TBI) and concussion, lung inflammation (ARDS, COPD, asthma, bronchitis), rheumatoid arthritis, inflammatory bowel disease, anxiety disorders, addiction disorders, pain, and other indications.