Company: IXHL
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-013783
Chunk: 117

Company: Incannex Healthcare Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 2
Chunk 117
---
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-1. On November 6, 2024, we filed a registration statement
on Form S-1/A (File No. 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 which was declared effective on December 6, 2024.
On December 11, 2024, our stockholders approved, for purposes of complying with Nasdaq Listing Rule 5635(d), the issuances of shares pursuant
to the ELOC in excess of the Exchange Cap. Our ability to make advances under the ELOC Purchase Agreement will also depend on the trading
volume of our Common Stock. If trading of our Common Stock fails to achieve or maintain the requisite volume levels, we will be limited
in our ability to use the ELOC Purchase Agreement and/or advances we make pursuant to the ELOC Purchase Agreement may adversely affect
the trading price of our Common Stock.

 Convertible Debenture
Financing

On September 6, 2024, we entered into a Securities
Purchase Agreement (the “September 2024 Purchase Agreement”) with Arena Investors, LP (“Arena Investors”), which
provides for the issuance of convertible debentures in an aggregate principal amount of up to $10
million at an aggregate purchase price of up to $9 million (a 10% original issue discount), divided into three separate tranches subject
to closing conditions for each tranche. Pursuant to the September 2024 Purchase Agreement, the conversion price of each secured
convertible debenture is to equal to 115% of the closing price of our Common Stock on the trading day preceding the date of the issuance
of