Here’s why the Incannex (ASX:IHL) share price is on ice today

The company’s shares are in a trading halt…

| More on:
Female doctor with a mask holds out hand in a stop gesture.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Incannex shares have been halted at 70 cents pending a company announcement
  • Incannex advised its upcoming release is in relation to a potential business acquisition 
  • The trading halt is expected to be lifted once the announcement is made or until this Thursday 24 March

The Incannex Healthcare Ltd (ASX: IHL) share price won’t be going anywhere on Tuesday.

This comes as the company requested that its shares be placed in a trading halt.

At the time of writing, the medicinal cannabis company’s shares are frozen at 70 cents apiece.

Why is the Incannex share price halted?

At market open, the company requested trading in its shares be halted while it prepared an announcement.

According to the release, the company is planning to make an announcement regarding a potential business acquisition transaction.

At this stage, the details remain unknown as to which company is subject to a possible takeover.

Incannex has requested that the trading halt remains in place until Thursday 24 March or following the release of the announcement, whichever comes first.

What does Incannex do?

Founded in 2001, Incannex is a clinical-stage pharmaceutical company developing novel medicinal cannabinoid compounds and psychedelic therapies for unmet needs.

This includes treatment of generalised anxiety disorder (GAD), obstructive sleep apnoea (OSA), traumatic brain injury (TBI)/concussion, lung inflammation (ARDS, COPD, asthma, bronchitis), rheumatoid arthritis, and inflammatory bowel disease.

Currently, the company is pursuing United States Food and Drug Administration (FDA) approval of all its drug candidates.

Once approved, Incannex is seeking to expand its products in other regions such as Europe, Japan, Australia, and Israel.

Incannex share price summary

Over the past 12 months, the Incannex share price has surged by more than 230% following its IHL-42X positive phase 2 clinical trial results.

Although, since the start of the year, its shares have recorded wild swings of more than 40% in either direction.

The company’s shares are up 12% in 2022.

Based on valuation grounds, Incannex has a market capitalisation of roughly $847 million, with approximately 1.2 billion shares outstanding.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position 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.

More on Healthcare Shares

health workers shake hands and congratulate each other on good news
Share Gainers

This ASX All Ordindaries healthcare share is ripping 17% higher amid a new contract win

Investors seem to like the contract win from this healthcare player.

Read more »

Two researchers discussing results of a study with each other.
Healthcare Shares

Here’s how ASX 200 healthcare shares performed in June

Healthcare shares were a tad ill in June.

Read more »

A doctor appears shocked as he looks through binoculars on a blue background.
Healthcare Shares

What’s the outlook for the CSL share price in July?

We take a look at what the experts are saying about the biotech company's shares.

Read more »

Photo of a group of scientists cheering while working in a lab as the Race Oncology share price skyrockets today on positive study results
Healthcare Shares

Why is the Race Oncology share price soaring 13% today?

New trial results have excited ASX investors.

Read more »

Rising arrow on a blue graph symbolising a rising share price.
Healthcare Shares

Starphama share price lunges 5% on product relaunch

Early support for Starphama on Thursday has it off to a great start.

Read more »

Man with rocket wings which have flames coming out of them.
Healthcare Shares

Why is the Paradigm share price rocketing 20% higher today?

The Paradigm share price is having a very strong day...

Read more »

A businessman presents a company annual report in front of a group seated at a table
Healthcare Shares

Own Immutep shares? Here are 3 takeaways from the company’s investor update

Investors were mute to the update.

Read more »

A health professional wearing a stethoscope and scrubs shrugs with uncertainty.
Healthcare Shares

Has CSL been growing its dividend?

Is the biotech giant still increasing its dividends in a post-COVID world?

Read more »