IHL (ASX) Ann: Incannex Undertakes A$13 Million Institutional Placement

Originally posted by MickeyMantle536: ↑

One of the most important roles of the board is to ensure the business is funded. The biggest investment disasters I’ve had personally were in stocks where the board failed to do this.

2023 is a significant year in respect to the clinical trials but during a period of genuine uncertainty with global markets.

Joel and the board have executed on a placement that ensures all the clinical trials can continue in parallel, including the important blended phase 2 / phase 3 pivotal OSA trial. And importantly they can continue regardless of market conditions.

That is called leadership and as a shareholder with a material position in IHL I’m 100% behind this decision.

It’s shortsighted to criticize the placement price without evaluating where these funds will be deployed. The very minimal dilution will also have virtually no influence on the future blue sky for existing shareholders. It’s less than 5%.

A minor step back in price is completely acceptable IMO when you consider the balance sheet is basically bullet proof now.

This is sensible, responsible governance from a board that is putting IHL in the best position to leverage the one thing that will create returns for shareholders, the success of the clinical programs.

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its nearly 10% fully diluted. wouldnt call that minimal dilution. how do they go from an 'enviable position with a long cash runway that allows us to continue our clinical programs unimpeded' to raising cash at a discount with 1:1 options in literally 1 week?

its short sighted to not criticise this placement without appreciating the fact that the very bod your putting on a pedestal told you only last week they had cash to continue on.

you cant keep blaming the marco for a crap cr, the message this sends is that there wont be material details released for the next 12 months so take advantage of the opportunity while you can, instos will still invest in companies that are progressing even in an economic downturn so its complete bs to say this was a good decision.

if circumstances really did change, which its highly likely they have realised they need more cash to do everything they wanted next year, pulling the wool over sh eyes leaves a bad taste. put in the ann, we have performed a cash flow analysis and this raise was necessary in order to achieve xyz but they didnt. the terms show this as having been done from a position of desperation not one of power.