Why the Incannex (ASX:IHL) share price leapt 9% today

Incannex shares are on the move after the company updated investors on its next moves.

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The Incannex Healthcare Ltd (ASX: IHL) share price is on the move in afternoon trade after the company gave a key update.

Incannex shares are now exchanging hands at 29 cents apiece, a 5.4% gain after reaching a high of 30.5 cents this morning.

rising medical asx share price represented by excited doctors dancing in ward

Image source: Getty Images

What did Incannex announce?

In a potential positive for the Incannex share price, the company announced it had filed a Form F–1 with the US Securities and Exchange Commission (SEC).

An F–1 form relates to a non-US company's proposal to complete a public offering in the United States.

Under this arrangement, Incannex is proposing a public offering of American depositary shares/receipts (ADS). This arrangement is similar to an IPO on a domestic exchange such as the ASX, for example.

Should the proposal succeed, each ADS would represent 50 ordinary Incannex shares. Moreover, Incannex "intends to call an extraordinary meeting" to seek shareholder approval for the issuance of these ordinary shares.

The company said the ADS would be listed on the NASDAQ under the ticker NASDAQ: IXHL.

Furthermore, the offering would be made "only by means of prospectus". That way, investors can read the particulars of the offering when copies are made available.

What else did the company say?

Incannex has yet to determine the number of securities or price per ADS, it said:

The number of securities to be sold and the price per ADS for the offering have not yet been determined. The offering will be subject to market conditions and there can be no assurance as to whether, or when, the offering may be launched or completed or as to the actual size or terms of the offering.

Incannex share price snapshot

The Incannex share price has climbed 90% into the green over the year to date, extending the last 12 month's gain of 383%.

These returns have outpaced the S&P/ASX 200 Index (ASX: XJO)'s return of around 25% over the past year.

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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