Incannex Healthcare Inc. Enters Agreement to Cancel Remaining Series A Warrants, Eliminating Up to 347.2 Million Shares from Potential Dilution Ahead of IHL-42X Phase 2 Topline Results

Core Viewpoint - Incannex Healthcare Inc. has entered into a binding agreement to cancel 172 million Series A Warrants, which, combined with a previous cancellation, will eliminate up to 347.2 million shares from potential future dilution, enhancing shareholder confidence and capital structure [1][2][3] Company Actions - The recent agreement follows an earlier transaction on May 20, 2025, which removed 175.2 million dilution-linked shares, indicating a strategic move to eliminate overhang from Series A Warrants [2] - The cancellation payment to Series A Warrant holders is up to $12.2 million, reflecting the company's commitment to managing dilution risk [1][3] Management Statements - Joel Latham, President and CEO, emphasized that this milestone strengthens the capital structure and provides clarity for shareholders, showcasing a proactive approach to value creation [3][4] - The timing of this agreement is crucial as the company approaches the release of topline data from its Phase 2 RePOSA trial of IHL-42X for obstructive sleep apnea, expected in July 2025 [3][4] Product Development - IHL-42X is an oral fixed-dose combination drug designed to treat obstructive sleep apnea by targeting its underlying pathophysiology, currently in a Phase 2/3 clinical trial expected to enroll over 560 patients globally [5][6] - Previous trials indicated that IHL-42X reduced the Apnea-Hypopnea Index (AHI) by an average of 51% relative to baseline, demonstrating its potential effectiveness [6] Company Overview - Incannex is focused on developing combination medicines for chronic conditions, including obstructive sleep apnea, rheumatoid arthritis, and generalized anxiety disorder, with multiple clinical-stage product candidates [7]