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Investing.com -- Incannex Healthcare Ltd ADR (NASDAQ:IXHL) stock plunged 38% after the company filed for a significant offering of common shares worth up to $100 million.
The clinical-stage pharmaceutical company revealed in a prospectus supplement that it is increasing the amount of shares it may offer and sell under its Amended and Restated Sales Agreement with A.G.P./Alliance Global Partners (NYSE:GLP) and Curvature Securities LLC. This $100 million offering comes in addition to shares with an aggregate gross sales price of approximately $63.47 million that were already sold pursuant to prior prospectuses.
The filing, dated May 28, 2025, amends and supplements information in the company’s prospectus from November 22, 2024, which was filed with the Securities and Exchange Commission as part of Incannex’s registration statements on Form S-3.
Investors typically react negatively to substantial share offerings as they can lead to dilution of existing shareholders’ equity. The size of the offering relative to Incannex’s market capitalization appears to be driving the sharp selloff in the stock.
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