Company: IXHL
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043682
Chunk: 14

Company: Incannex Healthcare Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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 as the economic characteristics and risks of the hybrid instrument. Each term and feature are then weighed based on the relevant
facts and circumstances to determine the nature of the host contract. Terms and features of the hybrid.

On 5 February, 2025, Arena Investors converted
a total of $100,000 debt into common shares.

On March 13, 2025 the Company repaid in full that
certain outstanding Convertible Debenture, previously issued pursuant to that certain Securities Purchase Agreement dated as of September
6, 2024, by and between the Company and the Arena Investors, by making a cash payment of $3,851,111.00, representing the outstanding principal,
interest, amounts and redemption premiums due as of February 28, 2025. In connection with the repayment of the Debenture, the Debenture
Purchase Agreement, the Security Documents and that certain Equity Line Purchase Agreement, dated September 6, 2024, by and between the
Company and Arena Investors were terminated except with respect to the indemnification and registration rights set forth therein. The
(i) warrant to purchase up to 453,749 shares of the Company’s common stock, par value $0.0001 per share, previously issued to Arena
Investords, (ii) Registration Rights Agreement, dated as of October 14, 2025, by and between the Company and Arena Investors and (iii)
warrant to purchase up to 585,000 shares of common stock, previously issued to Arena Global pursuant to the Equity Line Purchase Agreement
(the “ELOC Warrant”) remain in effect.

Refer to Note 12 for the accounting of the Convertible
Debenture.

9

Note 2 – Basis of Presentation and Summary of Significant
Accounting Policies (continued)

Private placement arrangement

On March 7, 2025, the Company entered into a private
placement (the “Private Placement”) pursuant to a securities purchase agreement with certain institutional investors (the
“Purchasers”) for the purchase and sale of approximately $12.5 million in gross proceeds of 9,687,045 shares of the Company’s
common stock, par value $0.0001 per share (the “Common Stock”) for a purchase price of $1.08 per share of Common Stock (and,
in lieu thereof, pre-funded warrant (the “Pre-Funded Warrants”) to purchase up to 1,887,045 shares (the “Pre-Funded
W