Company: IXHL
Filing Date: 2025-05-28
Form Type: 8-K
Source: 0001213900-25-047988
Chunk: 2

Company: Incannex Healthcare Inc.
Filing Date: 2025-05-28
Form: 8-K
Item: Item 1.01
Chunk 2
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/3 study of IHL-42X, the Company will pay to each Warrant Holder its pro rata portion of such
proceeds based on the number of securities purchased by such Warrant Holder pursuant to the Securities Purchase Agreement. In addition to any payments due pursuant to the First Letter Agreements, the Warrant Holders will each be paid their pro rata portion
of $1 million from net proceeds previously raised pursuant to the Sales Agreement prior to the date of the Second Letter Agreement. These
payments to the Warrant Holders are collectively referred to as the “ Warrant Cancellation Payment”.

In consideration of the Warrant Cancellation Payment,
the Warrant Holder’s number of Warrant Shares (as defined in the Series A Warrant) would be reduced by a number of shares obtained
by dividing the Warrant Cancellation Payment by $2.14, rounded down to the nearest whole share (the “ Warrant Cancellation”).
The Warrant Cancellation will have the same effect as cancellation of the original Series A Warrant and, to the extent less than the full
number of shares subject to each Series A Warrant are ultimately cancelled pursuant to the Second Letter Agreement, Series A Warrant will
automatically evidence the lower Warrant Share amount. For example, if the Company were to pay to the Warrant Holders an aggregate of
approximately $12.3 million in net proceeds, which would represent the maximum amount payable to all of the Warrant Holders as a Warrant
Cancellation Payment pursuant to the Second Letter Agreement, the aggregate number of shares underlying all of the remaining Series A
Warrants would be reduced to zero.

The Warrant Holders also waived, among other things,
provisions of the Securities Purchase Agreement that prohibit sales pursuant to the Amended and Restated Sales Agreement at a price less
than $1.08 per share and certain registration rights for the periods described in the Second Letter Agreements. The Company also agreed
to reimpose the registration rights sooner if it failed to make placements pursuant to the Sales Agreement during the period described
in the Second Letter Agreement if certain price and volume thresholds described in the Second Letter Agreements were met.

Except as set forth in the Second Letter Agreements,
the Company is not obligated to issue or sell any additional shares of its common stock under the Amended and Restated Sales Agreement
and there is no assurance that it will choose to or be able to issue or sell its common stock under the Amended and Restated Sales Agreement