Incannex Healthcare Announces Strategic Financing of Up to $60 Million with Arena Investors Page 1

Incannex Receives Financing of Up to $10 Million in Convertible Notes and a $50 Million Credit Line

NEW YORK and MELBOURNE, Australia, Sept. 10, 2024 (GLOBE NEWSWIRE) — Incannex Healthcare Inc. (Nasdaq: IXHL), (the “Company” or “Incannex”), a clinical-stage biopharmaceutical company developing life-changing medicines for people with chronic diseases and significant unmet medical needs, today announced that it has entered into an agreement to issue up to $10 million of secured convertible notes to Arena Investors, LP (Arena) and its affiliates. Under the terms of the agreements, Incannex will also secure a $50 million line of credit (ELOC) with Arena subsidiary Arena Business Solutions (“ABS”), which the Company does not expect to draw upon at closing.

“We are pleased to partner with Arena and ABS for this strategic financing, which strengthens Incannex’s ability to advance our lead programs through key late-stage clinical milestones,” said Joel Latham, President and Chief Executive Officer of Incannex. “We look forward to updating investors on our progress, including the advancement of IHL-42X through Phase 2/3 trials for the treatment of obstructive sleep apnea, PsiGAD through a Phase 2 trial for generalized anxiety disorder, and IHL-675A through a Phase 2 trial for rheumatoid arthritis.”

Incannex intends to use the proceeds from the strategic financing to support ongoing clinical trials of the Company’s proprietary drug candidates, and for working capital and other general corporate purposes. Incannex will determine the allocation of funds based on the Company’s strategic needs. The first tranche of financing of $3.33 million will be received by Incannex at closing. The Company may elect to access up to two subsequent tranches totaling $6.67 million. All three tranches include a 10% initial offering discount and are subject to customary closing conditions. Incannex has also entered into an ELOC with Arena with ABS. Under the terms of the agreement, the Company will have the right, but not the obligation, to issue and sell up to $50 million of shares of its common stock to Arena over a 36-month period, subject to customary closing conditions.