Company: IXHL
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-013783
Chunk: 30

Company: Incannex Healthcare Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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 Stock on the trading day preceding the date of the issuance
of the respective secured convertible debenture, subject to subsequent adjustments and alternative conversion prices related to the then-current
trading price of our Common Stock on Nasdaq as further described in the September 2024 Purchase Agreement. For each secured convertible
debenture purchased under the September 2024 Purchase Agreement, the Company will also issue to the purchaser a warrant exercisable to
purchase up to that number of shares of Common Stock equal to 25% of the total principal amount of the related secured convertible debenture
purchased by the purchaser on the applicable closing date divided by 115% of the closing price of the Company’s Common Stock on
the trading day immediately preceding such closing date. The Company is not obligated to issue warrants with respect to any tranche that
does not close. The exercise price of each warrant issued pursuant to the September 2024 Purchase Agreement will be 115% of the closing
price of the Common Stock on its issuance date and the warrants will have a five-year term.

As described in Note 16 of the Financial Statements included in this
Quarterly Report, on October 17, 2024, we 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, we issued a warrant to Arena Investors exercisable for up to 453,749 shares of Common Stock (the “First
Tranche Warrant”). The exercise price of the First Tranche Warrant is $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, were $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, but the Company
and Arena Investors may conduct additional closings under the September 2024 Purchase Agreement as they may agree and subject to