Adam JacksonIncannex Healthcare Inc. (Nasdaq: IXHL) announced Tuesday it has secured a financing agreement with Arena Investors, LP for up to $60 million, in a bid to advance the company’s clinical-stage drug candidates.
The deal includes up to $10 million in secured convertible notes and a $50 million equity line of credit. The Australia-based Incannex plans to use the funds to support ongoing clinical trials and general corporate purposes, it said.
“We are pleased to be partnering with Arena and ABS on this strategic financing, which strengthens Incannex’s ability to advance our lead programs through key late-stage clinical milestones,” Joel Latham, Incannex’s President and CEO, said in a statement.
The financing arrangement provides for an initial funding tranche of $3.33 million upon closing, with the option for two additional tranches totaling up to $6.67 million. All tranches include a 10% original issue discount.
Additionally, the $50 million ELOC agreement with Arena affiliate Arena Business Solutions (ABS) gives Incannex the flexibility to issue and sell shares of common stock over a 36-month period, the company said.
Incannex is currently conducting several clinical trials for psychedelic and cannabinoid-based drugs, including:
- Phase 2/3 study of IHL-42X for obstructive sleep apnea
- Phase 2 trial of PsiGAD for generalized anxiety disorder
- Phase 2 study of IHL-675A for rheumatoid arthritis
The company said it recently completed dosing in a 115-participant bioavailability/bioequivalence trial for IHL-42X. It also received approval from the Food and Drug Administration to proceed with a 94-patient Phase 2 clinical trial for its psilocybin-assisted psychotherapy program, PsiGAD, using Incannex’s psilocybin compound known as PSX-001.
Arena Investors, LP, with $3.5 billion in invested and committed assets under management as of June 30, according to the news release, specializes in providing capital to complex industries, including healthcare.
