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- Incannex Healthcare (IHL) has received firm commitments to raise $13 million through an institutional placement
- The placement will be undertaken by a small consortium of US and international investors who IHL says are known for providing long-term support to healthcare companies
- Incannex plans to issue roughly 63.4 million shares at 20.5 cents to raise the funds, and each share will come with one option, exercisable at 28.5 cents until December 31, 2025
- Incannex will use the money for research and development, including for the candidates obtained through the APIRx Pharmaceuticals acquisition
- Company shares are down 12 per cent to trade at 20 cents at 11:58 am AEDT
Incannex Healthcare (IHL) has received firm commitments for a $13 million share placement to a small consortium of US and international investors.
The consortium is reportedly known for providing long-term support to emerging healthcare companies in the US, Europe, and Asia.
The company will raise the $13 million via the issue of roughly 63.4 million shares at 20.5 cents, representing a 10.9 per cent discount to IHL’s last closing price.
For every new share subscribed for, Incannex intends to issue one free-attaching option, exercisable at 28.5 cents until December 31, 2025.
IHL’s Managing Director and CEO, Joel Latham, said he was “delighted” to welcome new shareholders to the company’s register.
“The consortium has a long history of providing expertise and support to emerging healthcare companies focused on changing gears from research and development to drug registration and commercialisation,” Mr Latham said.
Incannex will use the money for research and development of its drug candidates, including the candidates acquired through the acquisition of APIRx Pharmaceuticals. The company will also use the funds for general working capital, offer costs and corporate development.
Once the placement is complete and the company has received an expected research and development rebate, it will have a cash position of roughly $45 million. This will ensure Incannex’s expansive pipeline of clinical development programs will be fully funded into 2025.
Company shares were down 12 per cent to trade at 20 cents at 11:58 am AEDT.
