Company: IXHL
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043682
Chunk: 60

Company: Incannex Healthcare Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 60
---
, 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 25% of the total principal amount of the related September
2024 September 2024 Debenture purchased by the Purchaser on the applicable closing date divided by 115% of the closing price of our common
stock on the trading day immediately preceding such closing date. We are not obligated to issue a September 2024 Debenture Warrant with
respect to any September 2024 Debenture tranche that does not close. The exercise price of each September 2024 Debenture Warrant will
be 115% of the closing price of our common stock on its issuance date.

We must register the shares of our common stock
issuable upon conversion of the September 2024 Debentures and exercise of the September 2024 Debenture Warrants. However, the issuance
of the common stock underlying the September 2024 Debenture and the September 2024 Debenture Warrants are subject to stockholder approval
to the extent the issuance would exceed 19.99% of the number of shares of our common stock outstanding as of the date of the September
2024 Purchase Agreement.

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 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, with 10% original issue discount and payment-in-kind interest rate at 5%, to Arena Opportunities pursuant