Company: IXHL
Filing Date: 2025-04-17
Form Type: PRER14A
Source: 0001213900-25-033013
Chunk: 37

Company: Incannex Healthcare Inc.
Filing Date: 2025-04-17
Form: PRER14A
Chunk 37
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 may not occur), if this Proposal No. 2 is not approved, we will no
longer be able to raise funds through the issuance of shares of our common stock or through the issuance of instruments convertible
into shares of common stock at issuance and would have to raise funds through other means, including as debt financings or strategic
transactions. These other means may not be available to us or available to us on reasonable terms. To date, we are not profitable
and do not expect to be profitable in the near term. If we are unable to raise funds for this or any reason when and as needed to
support our continued research and development plans and our ongoing operations, we may be required to again pause our research and
development programs, again curtail our operations, enter into strategic transactions on unfavorable terms and/or cease our
operations entirely.

<div align='center'>18</div>

Potential Adverse Effects of the Share Increase

We will not solicit further authorization by vote
of the stockholders for the issuance of the additional shares of common stock proposed to be authorized, except as required by law, regulatory
authorities or rules of the Nasdaq or any other stock exchange on which our shares may then be listed. The issuance of additional shares
of common stock will likely have the effect of substantially diluting existing stockholder earnings per share, book value per share and
voting power. Our stockholders do not have any preemptive right to purchase or subscribe for any part of any new or additional issuance
of our securities by virtue of their holding shares of our common stock.

Current Plans, Proposals or Arrangements to Issue Shares of Common Stock

As noted above, as of April 11, 2025, there were
(i) 27,546,753 shares of our common stock were issued and outstanding, (ii) restricted stock units outstanding representing the contingent
right to receive an aggregate of 670,469 shares of common stock, (iii) options and warrants (other than the Pre-Funded Warrants and Series
A Warrants) outstanding to purchase an aggregate of 3,017,095 shares of common stock with a weighted average exercise price of $13.75
per share, (iv) 2,550,548 shares of common stock reserved for issuance pursuant to future grants under our equity incentive plans, (v)
1,887,045 shares of common stock issuable upon exercise of outstanding Pre-Funded Warrants, (vi) seven shares of our common stock are reserved