Company: IXHL
Filing Date: 2025-04-28
Form Type: DEF 14A
Source: 0001213900-25-036057
Chunk: 31

Company: Incannex Healthcare Inc.
Filing Date: 2025-04-28
Form: DEF 14A
Chunk 31
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 cover its sale at a later date. If the price of the stock goes down, the short selling investor will profit to the extent of the difference between the price at which it originally sold the stock less its later purchase price. Short sales often enable the short selling investors to profit in a down market. Short sales in the past have, and could again, place significant downward pressure on the price of our common stock. The Purchase Agreements do not contain a prohibition on the investors against short sales of our common stock following closing of the Private Placement, including short sales between the closing of the Private Placement and the date of Warrant Stockholder Approval. As such, receipt of the Warrant Stockholder Approval and, in particular the large number of shares then issuable upon exercise of the Series A Warrants and the exercise price adjustment provisions surrounding share combination events and Release Dates in the Series A Warrants, could encourage short sales of our common stock by the investors. When and if the Warrant Stockholder Approval is obtained, significant amounts of such short selling could place further downward pressure on the market price of our common stock. Interest of Certain Persons in Matters to Be Acted Upon Except with respect to their continued employment as officers or directors of the Company, no director or executive officer has any substantial interest, direct or indirect, by security holdings or otherwise, in this Proposal that is not shared by all of our other stockholders. Required Vote The affirmative vote of a majority of the shares of common stock present or represented by proxy and entitled to vote on the subject matter is required to approve this proposal. Abstentions will have the same effect as votes AGAINST this proposal. Broker non -voteswill have no effect on this proposal. Brokerage firms do not have authority to vote customers’ unvoted shares held by the firms in street name on this proposal. Shares subject the Voting Restriction are not entitled to vote on the Issuance Proposal and will have no effect on the results of this vote. 17 THE BOARD OF DIRECTORS RECOMMENDS A VOTE TO APPROVE, FOR PURPOSES OF COMPLYING WITH NASDAQ LISTING RULE 5635(D), THE ISSUANCE OF SHARES OF OUR COMMON STOCK UNDERLYING THE SERIES A WARRANTS, ISSUED IN CONNECTION WITH A PRIVATE PLACEMENT OF OUR SECURITIES THAT WAS CONSUMMATED ON MARCH 10, 2025 AND CERTAIN PROVISIONS OF THE SERIES A WARRANTS. PROXIES SOLICITED BY THE BOARD WILL BE VOTED