IXHL - Why Incannex Healthcare Stock Crashed Today
Shares of Incannex Healthcare (NASDAQ: IXHL) were crashing 58.4% lower as of 3:52 p.m. ET on Wednesday. The huge decline came after the Australian drugmaker announced earlier today the issuance of 1.85 million shares related to the exercise of unlisted stock options.
The addition of 1.85 million shares makes up less than 4% of Incannex Healthcare's outstanding shares. That's not nearly enough dilution to cause the pharmaceutical stock to plunge so much.
Today's sell-off is more likely the result of quick profit-taking. The share price skyrocketed earlier this week following the company's announcement of preliminary results from a phase 2 clinical study evaluating experimental cannabinoid IHL-42X in treating obstructive sleep apnea.
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Why Incannex Healthcare Stock Crashed Today