Shares in Incannex Healthcare Ltd (ASX: IHL) are pushing higher today and now trade almost 5% in the green at 69 cents apiece.
The Incannex share price has now climbed more than 50% this past week of trade and has locked an 11% gain for the year to date.
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Why is the Incannex share price charging higher?
Last week the company announced it will be issuing a set of 'loyalty options' in order to "reward loyal shareholders who have supported Incannex" over the year.
Obviously, that's not the only reason – the company will raise cash off the issue as well, confirmed by CEO Joel Latham in yesterday's release.
"The loyalty option is intended to reward our loyal shareholders whilst simultaneously assisting Incannex with the funding requirement for the next phase of development," he said.
The options will be distributed for nil consideration and the exchange ratio is 1 option for every 15 shares held.
These options will have an exercise price at 35 cents each – almost half in value of the company's share price at the time of writing.
Not only that, but the company will issue a set of 'piggy-back options' that are designed to be set at a ratio of 1 option for every two loyalty options exercised before expiry.
Unlike the loyalty issue, the piggy-back issue has a strike price of $1 per share and is due to expire on 28 April 2023.
Incannex looks set to utilise the funds to advance its clinical research programmes to get its pipeline converted onto the market.
Incannex share price snapshot
In the last 12 months, the Incannex share price has soared over 239% and is now up more than 11% for the year to date.
During the past month of trading, shares have spiked a further 18% and are now up more than 52% this past previous week.
