Why Did IXHL Stock Slump 20% In Pre-Market Today?

Shares of Incannex Healthcare Inc (IXHL) fell nearly 20% in pre-market trading on Thursday, after the company announced the pricing of its $10 million private placement. The company also shared that the Phase 3 development of its oral drug candidate for obstructive sleep apnea is not expected to begin until the second half of 2027.

The company plans to issue 2 million shares of common stock, or equivalents, along with warrants to purchase up to another 2 million shares at a combined price of $5.00 per share and accompanying warrant. IHXL shares closed at $5.97 in the previous session.

If the warrants are fully exercised for cash, Incannex could receive up to an additional $13 million, bringing total potential proceeds to about $23 million. 

The company said the funds should support completion of the Phase 2 DReAMzz study for its IHL-42X program, while existing cash will remain available for planned Phase 3 development expected to begin in the second half of 2027.

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