Incannex Healthcare Prices $10 Mln Potential Offering Of Shares And Warrants; Stock Down

(RTTNews) - Incannex Healthcare Inc. (IXHL), a clinical-stage biopharmaceutical company, announced that it has entered into a securities purchase agreement with healthcare-dedicated institutional investors for the issuance and sale of 2 million shares and accompanying warrants to purchase up to an aggregate of 2 million shares at a combined purchase price of $5.00 per share and accompanying warrants.

Following the news, IXHL plunges by 27% to $4.33 in the premarket.

The gross proceeds at the closing of the offering are expected to be approximately $10.0 million, and if the common warrants issued are exercised in full for cash, the company would receive up to an additional $13.0 million in gross proceeds, thus bringing the total potential gross proceeds to approximately $23.0 million.

The offering is expected to close on or about March 13, 2026.

Currently, Incannex expects the proceeds from the offering will be sufficient to complete the DReAMzz Phase 2 study for IHL-42X and intends to use the proceeds for working capital, research and development expenses, clinical trial expenses, and general corporate purposes.

The company's current cash on hand, prior to closing this financing, is expected to remain available for Phase 3 development and will not be used until Phase 3 begins, which is anticipated in the second half of 2027.

Each common warrant will be exercisable for one share of common stock at an exercise price of $6.50 per share, will be immediately exercisable, and will expire on 5:00 p.m. (New York City time) on March 13, 2031. The common stock equivalents have an exercise price of $0.0001, are immediately exercisable and expire when exercised in full.

Curvature Securities LLC is acting as the sole placement agent for the offering.

Incannex is advancing three clinical-stage product candidates that include,

- IHL-42X, Incannex's lead clinical program for the treatment of obstructive sleep apnea, which is in a phase 2 study. -IHL-675A, in development to alleviate inflammatory conditions, such as rheumatoid arthritis, is currently in a phase 2 development program.

-PSX-001 for the treatment of generalised anxiety disorder, which is approved for Phase 2 clinical development

IXHL has traded between $2.40 and $49.80 in the last year. The stock closed Wednesday's trade at $5.97, up 19.16%.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.