IHL - INCANNEX - Takeover that exceeds a valuation of $10b?

I am starting this thread because IMO the news of a possible Takeover / Acquisition of Incannex by some unknown Big Pharma company is a little stealthy at the moment. This will become an ongoing point of interest in this company moving forward.

A RECAP

For those that were not aware yesterday's Non-Price Sensitive Announcement - "Notice of Annual General Meeting" would not normally create too much interest - https://stocknessmonster.com/announcements/ihl.asx-3A605146/

BUT - This stealthy BOD could not hold back their overarching strategic objective without revealing some details of a Resolution in the upcoming Notice of Annual General Meeting, namely Resolution 6 Details of an Acquisition Incentive to Robert Clark

@malkazoid said "Goes some way to confirming our speculation that an eye to selling an asset or the company was part of why he was chosen, with his ongoing position with Novo Nordisk being potentially relevant.

"If the Company is acquired, the Company will issue Mr. Clark $2m of fully paid IHL shares for every $1b in valuation achieved when the acquisition settles. In the case of a takeover that exceeds a valuation of $10b, an additional super milestone incentive of 50% of the base value of IHL shares to
be issued will be granted to Mr. Clark. For the avoidance of doubt, the sale of a Company subsidiary, individual asset, intellectual property, partial or entire Company will constitute an acquisition event for the purposes of a Company acquisition incentive. "

@MickeyMantle536 said "Robert Clark’s options package has price hurdles of $1.00 and $1.50.
That’s a huge vote of confidence in the future value of the Company, particularly from someone with such a significant Pharma background.

@kingkev said "And he accepted the job with those conditions.......they certainly know so much more than what the market currently thinks they do"

The appointment of Robert Clark from Novo Nordisk ( Big Pharma Co.- $375 Bln Mkt Cap)
IMO is the biggest milestone in terms of Strategy this company has made since 25th July 2019's appointment of Dr Sud Agarwal as CMO.



His appointment as a Director was somewhat of a pleasant surprise, based on the announcement he was appointed to assist the company in the FDA approval process.
“He brings to Incannex deep knowledge of the US regulatory environment and decades of experience at the highest level of large pharmaceutical organisations. His experience will be invaluable to us now that our interactions with FDA have become more frequent whilst we pursue our mission to bring cannabinoid and psychedelic pharmacological solutions to patients with unmet medical needs”. Said Joel Latham CEO
https://stocknessmonster.com/announcements/ihl.asx-3A599204/

In response to a question from @Elu
hey Vinny love your informative posting, can you help me solve this …on the annual general meeting notice it was brought to my attention pg 12 of 17regarding approval of options to Robert ClarkeI’ve never come across his name till now and the incentives if AQUiSITiION is made ..just looks like they might have someone sniffing around a little earlier than I anticipated ..just a point that pricked my ears thank you in advance

It is no secret that the BOD has been open to a Sale of all or part of the Business sometime in the future and you are right this may come sooner than later.

Following the in-market success of its Epidiolex product, GW Pharma was acquired this year by the Nasdaq-listed Jazz Pharmaceuticals in a $US7.2 billion deal. Multiple pathways and diversified asset base while GW Pharma was successful with a sole product, Latham said IHL’s value proposition is based on a multi-channel approach. Click link to view article

@Badvet73 said
Well, for me, Robert Clarke's renumeration/options package reinforces my initial thoughts when I first invested in IHL. My goal, albeit high is between $5 -$10 . The initial investors I believe also had some lofty goals. Mr Clarke's appointment brought FDA approval experience and a lesser mentioned acquisition experience. It's now clear to me it's the lesser FDA and the greater acquisition power that he brings.I'll even go as far to predict it will be Novo who will do this. He sits on Novo and IHL. He will be the intermediary of this process and since the board are always thinking a couple of years ahead, I believe those early negotiations are already underway. Novo would have there fingers all over this and an insider who knows the inner workings would provide them with little surprises. IHL would be well aware of this but are obviously comfortable with their protection of IP and actively seeking Novo to be the golden goose.I have said previously, why would a well respected/experienced professional already at the height of his career bother with a little known company in Australia. He would not be on this board if he didn't see the goals as attainable! It's not a guarantee and there is still risk of failure, but he has been around along time in drug development and regulatory approval and he has backed our little startup! This is significant in my opinion.The cards are now on the table :We have a full house with a chance of a four of a kind.We might take this to production but the board are clearly looking at partial sell-offs or full acquisition as the goal. Easier money than taking it all the way as a no name company on the world stage.Their aim is well above $1 and they even dream that $10 is achievable. Lofty heights I know but you don't offer that in a package unless it is a possibility. And remember, Mr Clarke agreed to this, who is experienced in acquisitions, so he sees this as a possibility not just the board.In my opinion this is within the next 3 to 5 years as our OSA study will be completed and hopefully initiate the takeover.I sleep well at night as this board keeps ticking the boxes years ahead of where we are. Just my opinion, but it's not just numbers pulled from the ether. They are goals the board are aiming at.And when have they not met or exceeded their goals?
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@David91 said
Great to see the incentive structure sorted for Bob Clark which I have no doubt will pass at the AGM.The oppies at $1 and $1.50 both expire on 31/5/2024 which is just over 18 months from here. You would think Bob won’t be happy just getting to $1 he’ll want to comfortably secure both round of oppies at $1 and $1.5. If I’m not mistaken he’ll need to pay to exercise those options so any gain from these would only result with an even higher share price.The big one though for Bob is the company acquisition incentive. IHL currently has just over 1.5 bill shares on issue. Let’s assume over the next 2-3 years that number rises to 1.8 bill through stock based compensation and further cap raises which I don’t see being done under $1 so dilution will not be huge. A 10 Bill AUD company would equate to a share price of $5.55 based off 1.8 Bill SOI. Bob will be gunning for >10B to unlock the super incentive where he will stand to receive 20 mill worth of shares + 50% bonus on top. So if the company is sold for 15 bill he receive 30 mill base + 15 mill super incentive equating to a 45 mill payday.The upcoming oppies are just the carrot, the big money for Bob is around the company acquisition which he is very well versed in.Let’s not forget what jazz Pharma and Pfizer recently paid for CBD based drugs, somewhere in the vicinity of 7 bill USD to acquire 1 drug if I’m not mistaken. A 10 bill AUD valuation for IHL equates to 6.3bill USD and how many drugs do we have in the pipeline I forget???? Absolute no brainer hold here, the big money is on its way and if Bob Clark’s incentive structure is anything to go by a $5 share price at the very least is on the cards. Hold onto your shares!
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IMO the catalysts for a bid / takeover offer etc will be sometime after the opening of an IND with the FDA for our IHL-42X
"IHL-42X pivotal studies await"
The positive results (see our initiation) from the Phase II Australian trial for IHL-42X in obstructive sleep apnea have paved the way for the company to pursue FDA-regulated studies. Having already agreed with the FDA that IHL-42X would forgo preclinical animal studies, management believes that the current data package for IHL-42X will support opening an investigational new drug application to initiate studies in FY23, which we believe represents a significant catalyst for the company.
https://www.edisongroup.com/publication/targeting-fda-studies-in-fy23-2/31371/

A build-up in positive investor sentiment is possible leading up to a 400-participant Multi-National Multi Phase 2/3 FDA Trial and IMO this post-momentum push could also see an announcement from this STEALTHY BOD on any Partnership / Acquisition / Takeover news, whilst we have positive sentiment winds at our back!

Good luck all holders

Let our Acquisition thoughts flow ......