Incannex Healthcare (IXHL) on Friday said it priced a private placement of nearly 11.6 million shares of its common stock at $1.08 apiece, raising about $12.5 million in gross proceeds.
The company is also issuing an equal number of series A warrants to the institutional investors participating in the deal. The warrants will be exercisable at $2.16 per share, pending shareholder approval, and will expire in 30 months.
After deducting offering-related expenses, Incannex plans to use the net proceeds to fund ongoing clinical trials, including the US Phase 2 study of IHL-42X and its expansion into Phase 3, as well as for the repayment of outstanding convertible debentures, working capital, and general corporate purposes.
The offering is expected to close on or about Monday, according to the company.
Incannex shares closed more than 19% lower on Friday.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.