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.