Company: IXHL
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043682
Chunk: 59

Company: Incannex Healthcare Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 59
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 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 debentures in an aggregate principal amount
of up to $10 million at an aggregate purchase price of up to $9 million, divided into three separate tranches that are each subject to
closing conditions, with a 10% original issue discount (the “September 2024 Debentures”). The conversion price of each
September 2024 Debenture would be equal to 115% of the closing price of our common stock on the trading day preceding the date of the
issuance of the respective September 2024 Debenture, subject to adjustments related to the trading price of our common stock on Nasdaq.

Pursuant to the September 2024 Purchase Agreement,
we and certain of our subsidiaries (the “Subsidiaries”) and Arena Special Opportunities (Offshore) Master II LP (“Arena
Opportunities”) entered into a security agreement effective as of October 14, 2024 (the “Security Agreement”), pursuant
to which we (i) pledged the equity interests in the Subsidiaries and (ii) granted to Arena Opportunities a security interest in, among
other items, all of our owned assets, whether currently owned or later acquired, and all proceeds therefrom (the “Assets”),
as set forth in the Security Agreement. In addition, our Subsidiary, Incannex Healthcare Pty Ltd (IHPL) entered into a patent security
agreement (the “Patent Security Agreement”) and a trademark security agreement (the “Trademark Security Agreement”),
each effective as of October 14, 2024, pursuant to which IHPL granted to the investors a security interest in its patents