Incannex Healthcare Inc. (NASDAQ:IXHL), a cannabinoid and psychedelic medicine biotechnology company, announced Tuesday a significant financing agreement with Arena Investors, securing up to $60 million in funding. The deal includes $10 million in convertible notes and a $50 million equity line of credit (ELOC) with Arena Business Solutions (ABS), a related entity.
The financing will support the advancement of Incannex's clinical trials for its proprietary, synthetic cannabinoid and psychedelic-assisted therapeutics, targeting chronic conditions.
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Key Trials Progressing, Says Incannex CEO
Joel Latham, president and CEO of Incannex, expressed optimism about the partnership, highlighting its potential to drive key late-stage clinical milestones. "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," Latham stated in a press release.
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Incannex Financing Aligned With Strategic Goals
Upon closing, Incannex will receive an initial tranche of $3.33 million, with the option to access two additional tranches totaling $6.67 million. The $50 million ELOC allows the company to issue and sell shares over the next 36 months, providing flexible capital as needed.
Furthermore, Incannex plans to use the funds to support clinical trials and general corporate purposes, with allocations aligned with the company's strategic priorities.
IXHL Price Actio
IXHL's shares were trading 0.62% lower at $1.60 per share at the time of this writing around 11:45 AM ET Tuesday.
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