Company: IXHL
Filing Date: 2025-04-17
Form Type: PRER14A
Source: 0001213900-25-033013
Chunk: 53

Company: Incannex Healthcare Inc.
Filing Date: 2025-04-17
Form: PRER14A
Chunk 53
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 is no longer in our best interest and the best interests of our stockholders to proceed.

The primary purpose for effecting the Reverse
Stock Split would be to increase the per-share trading price of our common stock to:

| ● | maintain the listing of our common stock on Nasdaq and avoid delisting of our common stock from Nasdaq in the future on the basis 
 of the Bid Price Rule (as defined below);                                                                                         |

| ● | broaden the pool of investors that may be interested in investing in our company by attracting new investors who would prefer not 
 to invest in shares that trade at lower share prices; and                                                                         |

| ● | make our common stock a more attractive investment to institutional investors. |

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In evaluating whether to effect the Reverse Stock
Split, our board of directors has and will continue to consider negative factors associated with reverse stock splits. These factors include
the negative perception of reverse stock splits held by many investors, analysts, and other stock market participants and the fact that
the stock price of some companies that have effected reverse stock splits has subsequently declined back to pre-reverse stock split
levels. In recommending the Reverse Stock Split, our board of directors determined that the potential benefits significantly outweighed
these potential negative factors.

Criteria to be Used for Decision to Apply the Reverse Stock Split

If our stockholders approve the Reverse Stock Split,
our board of directors will be authorized, subject to the terms of the Purchase Agreements, to proceed with the Reverse Stock Split. The exact ratio of the Reverse Stock Split, within the 1-for-2 to 1-for-50
range, would be determined by our board of directors and publicly announced by us prior to the effective time of the Reverse Stock Split.
In determining whether to proceed with the Reverse Stock Split and setting the appropriate ratio for the Reverse Stock Split, our board
of directors will consider, among other things, factors such as:

| ● | Nasdaq’s minimum price per share requirements; |

| ● | the historical trading prices and trading volume of our common stock |

| ● | the then-prevailing and expected trading prices and trading volume of our common stock and the anticipated impact of the Reverse Stock 
 Split on the trading market for our common stock;                                                                                      |

| ● | the anticipated impact of a particular ratio on our ability to reduce administrative and transactional costs; |

| ● | business developments affecting us; and |

| ● | prevailing general market and economic conditions. |

Reasons for the Reverse Stock