Company: IXHL
Filing Date: 2025-04-07
Form Type: 424B5
Source: 0001213900-25-029414
Chunk: 16

Company: Incannex Healthcare Inc.
Filing Date: 2025-04-07
Form: 424B5
Chunk 16
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 alternatives
that we are able to consider, adversely affect our ability to raise additional capital through the public or private sale of equity securities,
significantly affect the ability of investors to trade our securities, or negatively affect the value and liquidity of our common stock.

<div align='center'>S-6</div>

If the Series A Warrants are exercised by way of an alternative cashless exercise, stockholders will suffer substantial dilution.

If the Series A Warrants
are exercised by way of a zero strike price exercise, the exercising holder will receive 3 shares of common stock for each Series A Warrant
they exercise, without any cash payment to us. As a result, we do not expect to receive cash proceeds from the exercise of the Series
A Warrants. Given these terms, it is very unlikely that the Series A Warrants would be exercised on a cash or cashless exercise or that
we would receive any proceeds upon exercise of the Series A Warrants.

The number of shares issuable
upon exercise of the Series A Warrants, including those issuable upon zero strike price exercise may be increased upon adjustment of the
exercise price of the Series A Warrants. In addition to adjustments for recapitalization events, the exercise price of the Series A Warrants
will be reduced (but in no event increased) to the greater of (I) the Floor Price and (II) the lowest dollar-volume-weighted-average-price
during the period beginning two full trading days prior to the Release Date and ending on the 10th trading day after the Release Date.
As a result, the aggregate number of shares underlying all of the Series A Warrants, may increase from 11,574,090 to up to 115,740,900,
assuming full adjustment of the exercise price to the Floor Price and before giving effect to the zero strike price exercise provision.
Assuming full adjustment of the exercise price to the Floor Price, the aggregate number of shares issuable upon a zero strike price exercise
of all of the Series A Warrants would be 347,222,700. The exercise price of the Series A Warrants will also be reduced if at any time
after the Private Placement, the Company subdivides its outstanding Common Stock, including by a reverse stock split, the exercise price
in effect immediately prior to such subdivision will be proportionately reduced and the number of Series A Warrant Shares will be proportionately
increased. Upon any such resulting adjustment of the exercise price in the Series A Warrants, the