Company: IXHL
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043682
Chunk: 29

Company: Incannex Healthcare Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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 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 12-month
period, one-third of the Company’s public float under the SEC’s “baby shelf” rule for SEC-registered transactions
by an issuer with a public float under $75 million when using a “shelf” registration statement on Form S-3. On November 6,
2024, we filed a registration statement on Form S-3 (333-283025) registering for resale up to 61,389,758 shares of our common stock (the
“Resale Registration Statement”), including the issuances to be made under the ELOC Purchase Agreement.

20

Convertible Debenture Financing

On September 6, 2024, we entered into that certain
Securities Purchase Agreement (the “September 2024 Purchase Agreement”) with Arena Investors, LP (“Arena Investors”)
pursuant to which we will issue secured convertible