Incannex Healthcare Ltd (ASX:IHL, NASDAQ:IXHL) has raised A$13 million from a placement of shares with a small consortium of US and international institutional investors with significant healthcare experience in the US, Europe and Asia.
The clinical-stage pharmaceutical company developing medicinal cannabinoid and psychedelic therapies for unmet medical needs will issue 63.4 million new shares at A$0.205 each to the investors. Each share will come with one free option, exercisable before December 31, 2025, at a price of A$0.285.
Incannex hopes to raise a further A$18.1 million in funding if the options are fully exercised.
The funds raised will be used for research and development of the company’s drug candidates, including the candidates acquired as part of the acquisition of APIRx Pharmaceuticals, for general working capital and corporate development.
Long-term funds
Incannex managing director and chief executive officer Joel Latham said: “We are delighted to welcome new institutional shareholders onto our share register after an approach to me directly from the consortium’s cornerstone investor in September.
“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.
“The quantum of the capital raising was structured precisely to ensure that our team has a certain long-term budget runway, unhindered by uncertainty in global markets. This will become increasingly important over the next two years as we commence multiple pivotal clinical trials and manufacture of cGMP pharmaceutical products.”
Funds from the placement, existing cash reserves and an expected research and development rebate, will strengthen the company’s cash position to about A$45 million, ensuring that its expansive pipeline of clinical development programs will be fully funded into 2025.
Incannex is developing unique medicinal cannabis pharmaceutical products and psychedelic medicine therapies for the treatment of obstructive sleep apnoea, traumatic brain injury and concussion, lung inflammation (ARDS, COPD, asthma, bronchitis), rheumatoid arthritis, inflammatory bowel disease, anxiety disorders, addiction disorders and pain, among other indications.