Incannex Healthcare Inc. (Nasdaq: IXHL) announced that it has raised $12.5 million to fund ongoing clinical trials. Incannex said the studies include completing the U.S. Phase 2 study of IHL-42X, an oral, once-daily treatment for sleep apnea, and its expansion into the Phase 3 portion of the study, with sites in the U.K. and the U.S. The proceeds will also be used to repay outstanding convertible debentures, as working capital, and for general corporate purposes.
The company told investors it entered into security purchase agreements with certain institutional investors for the purchase and sale of 11,574,090 shares of common stock for a purchase price of $1.08 per share and Series A common stock warrants to purchase up to 11,574,090 shares of common stock at an initial exercise price of $2.16 per share. The deal is expected to close by March 10.
In February, Incannex reported its fiscal second-quarter earnings. The company had a tiny revenue of $12,000 to report in the quarter with a net loss of $6.3 million versus last year’s net loss of $4.3 million. At the time, cash and cash equivalents were $2.1 million versus $3.6 million at the end of the third quarter. The company was also reported as a going concern.
Incannex’s lead Phase 2/3 and Phase 2 clinical programs include IHL-42X, an oral fixed-dose combination of dronabinol and acetazolamide, designed to act synergistically in treating obstructive sleep apnea. During the earnings announcement, CEO Joel Latham said, “Patients with obstructive sleep apnea need new and convenient therapeutic options to manage this serious, chronic and life-threatening disease. We are enthusiastic about the potential for IHL-42X, an oral, once-daily treatment that uniquely targets physiological pathways responsible for the airway obstruction characteristic of OSA. We achieved a key milestone for our OSA program, reporting positive top-line results from a pharmacokinetics (PK) and safety study of IHL-42X, conducted alongside our global Phase 2/3 RePOSA study.” The top-line readout from the U.S. Phase 2 portion of the IHL-42X trial is expected in the first half of 2025.
The company also has PSX-001 in its pipeline. This is an oral synthetic psilocybin treatment that when taken in combination with psychotherapy, is used for the treatment of generalized anxiety disorder. Incannex said it plans to submit full results from the PsiGAD1 Phase 2 trial for publication in a peer-reviewed scientific journal. The “PsiGAD2” Phase 2 trial is expected to recruit 94 patients with GAD, including those currently treated with selective serotonin reuptake inhibitors (SSRIs), who meet the study inclusion and exclusion criteria in the United States and United Kingdom.
[[{“value”:”The company plans to use the proceeds to advance the company’s sleep apnea drug.
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