Company: IXHL
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-013783
Chunk: 82

Company: Incannex Healthcare Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 82
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 such notice) delivered to Arena Global.
The ELOC Purchase Agreement will terminate automatically upon the earliest to occur of (i) the first day of the month following the 36-month
anniversary of the date of the ELOC Purchase Agreement; or (ii) the date on which Arena Global shall have purchased shares of Common Stock
under the ELOC Purchase Agreement for an aggregate gross purchase price equal to the Commitment Amount (as defined in the ELOC Purchase
Agreement). In connection with the ELOC Purchase Agreement we agreed, among other things to issue to Arena Global, as a commitment fee,
that number of shares of our Common Stock equal to 250,000 divided by the simple average of the daily VWAP of our Common Stock during
the five trading days immediately preceding the effectiveness of a “shelf” registration statement on Form S-1 on which the
estimated number of shares of our Common Stock are registered. As additional consideration for Arena Global’s execution and delivery
of the ELOC Purchase Agreement, we issued on October 31, 2024, a five-year warrant (the “ELOC Warrant”) exercisable for 585,000
shares of our Common Stock with an exercise price equal to $1.66 per share. However, we may not sell Common Stock to Arena Global under
the ELOC Purchase Agreement if (i) a shelf registration statement on Form S-1 that registers the Common Stock issuable under the ELOC
Purchase Agreement has not been declared effective by the SEC; (ii) the number of shares of our Common Stock issuable to Arena Global
pursuant to a sale notice causes the aggregate number of shares of our Common Stock beneficially owned by Arena Global and its affiliates
would exceed 9.99% of the number of shares of our Common Stock then outstanding; (iii) the Shareholder Approval (as defined in the ELOC
Purchase Agreement) to issue Common Stock in excess of the Exchange Cap (a cap limiting the issuance of shares pursuant to the ELOC Purchase
Agreement and ELOC Warrant to 19.99% of the Company’s issued and outstanding shares on the date of the ELOC Purchase Agreement (3,526,802
shares of Common Stock) to the extent such prior stockholder approval would be required for compliance with the rules and regulations
of Nasdaq); or (iv) such sale of shares of our Common Stock would exceed, during any 12-month period, one-third of the Company’s
public float under the