Company: IXHL
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043682
Chunk: 30

Company: Incannex Healthcare Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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 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, patent applications,
and all proceeds therefrom and a security interest in its trademarks, trademark applications, and all proceeds therefrom, respectively.
In addition, pursuant to the Security Agreement, the Subsidiaries granted to Arena Opportunities a security interest in its Assets and,
pursuant to a Subsidiary Guarantee effective as of October 14, 2024 (the “Subsidiary Guarantee”), jointly and severally
agreed to guarantee and act as surety for our obligation to repay the Debentures and other obligations under the other transaction documents.

As additional consideration for the Purchaser’s
purchase of each September 2024 Debenture, we will issue a warrant (a “September 2024 Debenture Warrant”), with a five year
expiration, each exercisable for number of shares of our common stock equal to