Company: IXHL
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001213900-25-092837
Chunk: 555

Company: Incannex Healthcare Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 2
Chunk 555
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 For each secured convertible debenture purchased under
the Debenture Purchase Agreement, the Company would have issued a warrant to the purchaser, exercisable to purchase up to the number of
shares of Common Stock equal to 25% of the total principal amount of the related secured convertible debenture, divided by 115%
of the closing price of the Company’s common stock on the trading day immediately preceding the applicable closing date. The Company
would not have been obligated to issue warrants for any tranche that did not close. The exercise price of each warrant would have been
115% of the closing price of the common stock on the issuance date, and the warrants would have had a five-year term. Additionally,
the Company had agreed to pay a financial advisor up to 7% of the gross proceeds raised under the Debenture Purchase Agreement.

The Company completed the closing of the first
tranche under the Debenture Purchase Agreement for the issuance of a 10% original issue discount secured convertible debenture (the
“Debenture”) in the principal amount of $3,333,333 at an aggregate purchase price of $3 million (a 10% original
issue discount) to Arena Special Opportunities (Offshore) Master II LP (“Arena Opportunities”). The Debenture had provided
for a payment-in-kind interest rate at 5% and would have matured on April 14, 2026. In addition, the Company issued a warrant to
Arena Offshore exercisable for up to 453,749 shares of the Company’s common stock (the “Debenture Warrant”),
at an exercise price of $1.89 per share.

The net proceeds received from the issuance of
the Debenture, after deduction of expenses reimbursable to the Arena Investors, was $2,877,588.

 The Company had not met the closing conditions
for the second and third tranche closings set forth in the Debenture Purchase Agreement; however, the Company and Arena Investors could
have conducted additional closings under the Debenture Purchase Agreement, subject to mutual agreement and the closing conditions described
therein. There were assurances that the parties could have reached such an agreement for additional tranche closings.

 On November 6, 2024, and as required by our
agreements in connection with the Debenture, the Company filed a resale Registration Statement on Form S-1/A with the SEC, registering
for