Company: IXHL
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001213900-25-092837
Chunk: 795

Company: Incannex Healthcare Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 6
Chunk 795
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 Investors converted
a total of $100,000 debt into shares of the Company’s common stock.

 On March 13, 2025 the Company repaid in full
the Debenture 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
(as defined in the Debenture Purchase Agreement) and the ELOC Purchase Agreement were terminated, except with respect to the indemnification
and registration rights set forth therein. The (i) Debenture Warrant, (ii) Registration Rights Agreement, dated as of October 14, 2025,
by and between the Company and Arena Investors and (iii) the ELOC Warrant remain in effect.

Refer to Note 13 – “Fair Value
of Financial Instruments” for the accounting of the Convertible Debenture.

Private placement arrangement

On March 7, 2025, the Company entered into a private
placement (the “Private Placement”) pursuant to a securities purchase agreement (the “March 2025 Securities Purchase
Agreement”) with certain institutional investors for the purchase and sale of approximately $12.5 million in gross proceeds
of 9,687,045 shares of the Company’s common stock for a purchase price of $1.08 per share of common stock (and, in
lieu thereof, pre-funded warrants (the “Pre-Funded Warrants”) to purchase up to 1,887,045 shares of common stock
(the “Pre-Funded Warrant Shares”) at a price of $1.0799 per Pre-Funded Warrant) and Series A common stock warrants (the
“Series A Warrants”) to purchase up to 11,574,090 shares of Common Stock at an initial exercise price of $2.16 per
share.

The Pre-Funded Warrants were exercisable
for shares of common stock for a nominal exercise price of $0.0001 per Pre-Funded Warrant Share, were immediately exercisable upon issuance
and expired when exercised in full.  On March 10, 2025, the Company received substantially all the Pre-Funded Warrants proceeds upfront
as part of the Pre-Funded Warrants’ purchase price and in return the Company is obligated to issue up to a fixed