Company: IXHL
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043682
Chunk: 58

Company: Incannex Healthcare Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 58
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daq”) for the trading day specified in the sale notice (same trading day or one trading day
following such notice) delivered to Arena Global. The ELOC Purchase Agreement will terminate automatically upon the earliest to occur
of (i) the first day of the month next following the 36-month anniversary of the date of the ELOC Purchase Agreement; or (ii) the date
on which Arena Global shall have purchased shares of our common stock under the ELOC Purchase Agreement for an aggregate gross purchase
price equal to the Commitment Amount (as defined in the ELOC Purchase Agreement). In connection with the ELOC Purchase Agreement we agreed,
among other things to issue to Arena Global, as a commitment fee, that number of shares of our common stock equal to 250,000 divided by
the simple average of the daily VWAP of our common stock during the five trading days immediately preceding the effectiveness of a “shelf”
registration statement on Form S-3 on which the estimated number of shares of our common stock are registered. As additional consideration
for Arena Global’s execution and delivery of the ELOC Purchase Agreement, we issued on October 31, 2024, a five-year warrant (the
“ELOC Warrant”) exercisable for 585,000 shares of our common stock with an exercise price equal to $1.66 per share. However,
we may not sell common stock to Arena Global under the ELOC Purchase Agreement if (i) a shelf Registration Statement on Form S-3 that
registers the common stock issuable under the ELOC Purchase Agreement has not been declared effective by the SEC; (ii) the number of shares
of our common stock issuable to Arena Global pursuant to a sale notice causes the aggregate number of shares of our common stock beneficially
owned by Arena Global and its affiliates would exceed 9.99% of the number of shares of our common stock then outstanding; (iii) the Shareholder
Approval (as defined in the ELOC Purchase Agreement) to issue Common Stock in excess of the Exchange Cap (a cap limiting the issuance
of shares pursuant to the ELOC Purchase Agreement and ELOC Warrant to 19.99% of the Company’s issued and outstanding shares on the
date of the ELOC Purchase Agreement (3,526,802 shares of Common Stock) to the extent such prior stockholder approval would be required
for compliance with the rules and regulations of Nasdaq); or (iv) such sale of shares of our common stock would exceed, during any