Clinical-stage cannabinoid and psychedelics medicine developer Incannex Healthcare (ASX: IHL) has announced it has raised almost $18 million via the completion of option exercises.
A total of 118 million option securities were exercised at $0.08 each before their 30 September 2021 expiry, with a significant proportion of options being held by Incannex directors or existing shareholders that have a track record of long-term investment in the company.
An additional 40.99 million non-transferable option securities were exercised by Incannex chief medical officer and director Dr Sud Agarwal.
This represents a further $8.2 million investment by Dr Agarwal, bringing his direct and indirect stake in the company to about 8.88%.
Incannex said its cash balance following the $17.66 million option exercises now stands at $22.36 million, which positions it in “good stead for the continued development and expansion of its pharmaceutical drug and therapy programs”.
“The directors of Incannex thank its loyal option and shareholders for their support and recognition of the value of the company’s research assets and its pursuit to become a market leader in novel drug development for unmet patient needs,” it stated.
Proposed Nasdaq listing
Incannex is developing unique medicinal cannabis pharmaceutical products and psychedelic medicine therapies for the treatment of generalised anxiety disorder, obstructive sleep apnoea, traumatic brain injury/concussion, lung inflammation, rheumatoid arthritis and inflammatory bowel disease.
The company is pursuing approval and registration from the US Food and Drug Administration (FDA) for each drug and therapy under development, subject to ongoing clinical success.
In August, Incannex announced it had filed a registration statement with the United States Securities and Exchange Commission (SEC) relating to a proposed initial public offering to list on the Nasdaq exchange.
Following the completion of the option exercises announced today, each director of Incannex has executed a six-month voluntary escrow agreement to satisfy the rules of the SEC.
According to Incannex, director escrow arrangements are in line with pursuing listing the company’s securities on the Nasdaq.