The Incannex Healthcare Ltd [ASX:IHL] share price has risen 6.17% today, to trade at 8.6 cents at the time of writing.
What’s happening at Incannex Healthcare?
Incannex Healthcare is involved in clinical stage cannabinoid pharmaceutical development. The company is currently focusing on four clinical programs in the hope of gaining FDA approval.
These include treatments for:
- Obstructive Sleep Apnoea (‘OSA’)
- Traumatic Brain Injury (‘TBI’)/Concussion
- Sepsis Associated Acute Respiratory Distress Syndrome (‘SAARDS’)
- Temporomandibular Joint Disorder (‘TMJD’)
The company announced recently that the cannabinoid arm of the business recorded a strong sales month, with $695,000 in cash receipts.
It may not sound like much, but for context, they used to run a dental products business.
CEO and Managing Director of Incannex Healthcare, Mr Joel Latham, said:
‘The September 2020 quarter is the first quarter in which cannabinoid products were the sole contributor to our revenues. Therefore, I am delighted to report that our most significant quarter of cash sales has come immediately after Incannex finalised its transition into a pure play pharmaceutical development company.’
This was coupled with the recent competition of a capital raise that pulled in $10 million.
With over $12 million in cash, Incannex they can now focus on expanding their new business.
Where to from here for the Incannex share price?
With a market cap of $65.06 million, the company is on the small side. However, with the cannabinoid market expected to expand to US$44 billion by 2024, the company may have room to grow.
The IHL share price moved up strongly in the last two weeks, should this continue then the levels of 8.8 and 9.6 cents may become the focus.
With the last two weeks pushing up on higher volume, this may indicate buyers are willing to push the price up.
On the downside, should the IHL price turn and retrace, then the levels of 7 and 5.8 cents may come into play.
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