Incannex Healthcare Inc. (IXHL) has announced a strategic financing agreement with Arena Investors, LP, securing up to $60 million to propel its clinical-stage drug development programs. The funding aims to support ongoing clinical trials, including those for obstructive sleep apnea, generalized anxiety disorder, and rheumatoid arthritis.
The financing package includes $10 million in secured convertible notes and a $50 million equity line of credit (ELOC) with Arena Business Solutions (ABS), an affiliate of Arena Investors. This financial boost is expected to provide Incannex with the necessary capital to achieve key milestones in its late-stage clinical trials.
Clinical Programs to Benefit
According to Incannex, the funds will be allocated to support several ongoing clinical trials:
- IHL-42X: A Phase 2/3 study for the treatment of obstructive sleep apnea.
- PsiGAD: A Phase 2 trial for generalized anxiety disorder utilizing psilocybin-assisted psychotherapy.
- IHL-675A: A Phase 2 study for rheumatoid arthritis.
Joel Latham, President and CEO of Incannex, expressed optimism about the partnership, stating, "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."
Financing Details
The financing arrangement includes 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. 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.
Incannex recently completed dosing in a 115-participant bioavailability/bioequivalence trial for IHL-42X and received FDA approval 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.
With $3.5 billion in invested and committed assets under management as of June 30, Arena Investors, LP specializes in providing capital to complex industries, including healthcare.
