NEW YORK and MELBOURNE, Australia, Sept. 10, 2024 (GLOBE NEWSWIRE) -- 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 ...
