Incannex Healthcare Announces Strategic Financing for up to $60 Million with Arena Investors
10 September 2024 - 10:00PM
Incannex Healthcare Inc. (Nasdaq: IXHL), (the “Company” or
“Incannex”), a clinical-stage biopharmaceutical company developing
life-changing medicines for people with chronic diseases and
significant unmet medical needs, today announced it has entered
into an agreement to issue up to $10 million in secured convertible
notes to Arena Investors, LP (Arena) and its affiliates. Under the
terms of the agreements, Incannex will also secure a $50 million
equity line of credit (ELOC) with Arena affiliate, Arena Business
Solutions (“ABS”), which the Company does not anticipate drawing
upon at closing.
“We are pleased to be partnering with Arena and ABS on this
strategic financing, which strengthens Incannex’s ability to
advance our lead programs through key late-stage clinical
milestones,” said Joel Latham, Incannex’s President and Chief
Executive Officer. “We look forward to updating investors on our
progress, including progressing IHL-42X through Phase 2/3 trials
for the treatment of obstructive sleep apnea, PsiGAD through a
Phase 2 study for generalized anxiety disorder, and IHL-675A
through a Phase 2 trial for rheumatoid arthritis.”
Incannex intends to use the proceeds from the strategic
financing to support the ongoing clinical trials of the Company’s
proprietary drug candidates, and for working capital and other
general corporate purposes. Incannex will determine allocation of
funds according to the company’s strategic needs. The initial
funding tranche of $3.33 million will be received by Incannex upon
closing. The Company may elect to access to two subsequent tranches
up to a total of $6.67 million. All three tranches will include a
10% original issue discount and are subject to customary closing
conditions. Incannex has also entered an ELOC with Arena with ABS.
Under the terms of the agreement the Company will have the right,
but not the obligation, to issue and sell to Arena up to $50
million of shares of common stock over a period of 36 months,
subject to customary conditions.
Further information regarding the Securities Purchase Agreement
and the ELOC Agreement are provided in the Current Report on Form
8-K filed today with the Securities and Exchange Commission.
About Arena Investors, LPArena is an
institutional asset manager founded in partnership with The Westaim
Corporation (TSXV: WED). With $3.5 billion invested and
committed assets under management as of June 30, 2024, and a
team of over 180 employees in offices globally, Arena provides
investment capital to a broad range of industries, including
healthcare. The firm brings individuals with decades of experience,
a track record of comfort with industry complexity, the ability to
deliver within time constraints, and the flexibility to engage in
transactions that cannot be addressed by banks and other
conventional financial institutions. Arena Business Solutions, an
affiliate of Arena, provides equity capital markets solutions for
emerging public companies. For more information, please visit
www.arenaco.com.
About Incannex Healthcare Inc. Incannex is a
clinical-stage biopharmaceutical development company focused on
developing innovative medicines for patients living with chronic
diseases and significant unmet need. With three programs currently
in Phase 2/3 and Phase 2 development, Incannex is advancing
proprietary, synthetic first- and best-in-class cannabinoid and
psychedelic-assisted therapeutics targeting sleep apnea, anxiety,
and inflammatory diseases. Incannex’s lead programs include IHL-42X
for the treatment of obstructive sleep apnea (OSA), Psi-GAD in
development to assess the use of psilocybin-assisted therapy for
generalized anxiety disorder, and IHL-675A in Phase 2 trials for
rheumatoid arthritis. Each of these programs target conditions for
which there are either no approved treatments or the available
treatments are inadequate. For further information, please visit
www.incannex.com.
Forward-looking statementsThis press release
contains "forward-looking statements" within the meaning of the
"safe harbor" provisions of the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking statements are made as of
the date they were first issued and were based on current
expectations and estimates, as well as the beliefs and assumptions
of management. The forward-looking statements included in this
press release represent Incannex's views as of the date of this
press release. Incannex anticipates that subsequent events and
developments may cause its views to change. Incannex undertakes no
intention or obligation to update or revise any forward-looking
statements, whether as of a result of new information, future
events or otherwise. These forward-looking statements should not be
relied upon as representing Incannex's views as of any date after
the date of this press release.
Not an offer of securitiesThis announcement
does not constitute an offer to sell, or a solicitation of an offer
to buy, securities in the United States or any other jurisdiction.
Any securities described in this press release have not been, and
will not be, registered under the Securities Act of 1933 and may
not be offered or sold in the United States except in transactions
exempt from, or not subject to, the registration requirements of
the Securities Act and applicable state securities laws.
Contact Information:Incannex Healthcare
Inc.Joel LathamPresident and CEO
investors@incannex.com.au
Investor Relations Contact – United States
Jennifer Drew-Bear Edison GroupJdrew-bear@edisongroup.com
Arena Investors, LPParag Shahir@arenaco.com
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