Company: IXHL
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-013783
Chunk: 13

Company: Incannex Healthcare Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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further detailed in the September 2024 Purchase Agreement. For each secured convertible debenture purchased under the September 2024 Purchase
Agreement, the Company will also issue 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 is not obligated to issue warrants for
any tranche that does not close. The exercise price of each warrant will be 115% of the closing price of the Common Stock on the issuance
date, and the warrants will have a five-year term. Additionally, the Company has agreed to pay a financial advisor up to 7% of the gross
proceeds raised under the September 2024 Purchase Agreement.

The Company completed the closing of the first
tranche under the September 2024 Purchase Agreement for the issuance of a 10% original issue discount secured convertible debenture (the
“First Tranche 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 First Tranche Debenture
provides for a payment-in-kind interest rate at 5% and matures on April 14, 2026. In addition, the Company issued a warrant to Arena Investors
exercisable for up to 453,749 shares of Common Stock (the “First Tranche Warrant”), at an exercise price of $1.89 per share.

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

The Company did not meet the closing conditions for the second and
third tranche closings set forth in the September 2024 Purchase Agreement; however, the Company and Arena Investors may conduct additional
closings under the September 2024 Purchase Agreement, subject to mutual agreement and the closing conditions described therein. There
can be no assurance that the parties will reach such an agreement for additional tranche closings. 

On November 6, 2024, and as required by our agreements
in connection with the First Tranche Debenture, the Company filed