Company: IXHL
Filing Date: 2025-04-17
Form Type: PRER14A
Source: 0001213900-25-033013
Chunk: 41

Company: Incannex Healthcare Inc.
Filing Date: 2025-04-17
Form: PRER14A
Chunk 41
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 As of the date hereof, we are not aware of any such changes in
applicable law.

As of April 11, 2025, a total of 2,550,548 shares
of our common stock remain available for issuance under the 2023 Plan and restricted stock units representing the contingent right to
receive an aggregate of 670,469 shares of our common stock were outstanding. As of April 11, 2025, a total of 1,778,983 shares of our
common stock have been issued upon the exercise of options and the vesting of restricted stock units granted under the 2023 Plan.

As of April 11, 2025, the equity overhang, represented
by (a) the sum of all outstanding restricted stock units and other stock-based awards under all Company equity plans, plus the number
of shares available for issuance pursuant to future awards under the 2023 Plan as a percentage of (b) the sum of (i) the number of shares
of our common stock outstanding as of April 11, 2025, plus (ii) the number of shares described in clause (a) above, was 12.5%. If the
Amended 2023 Plan is approved by stockholders, the equity overhang would be 22.3% as of immediately following such approval. The foregoing
calculation of the equity overhang does not take into account the up to 347,222,700 shares of our common stock issuable upon exercise
of the Series A Warrants, assuming full adjustment of the exercise price equal to the Floor Price of $0.216 per share and exercise pursuant
to the zero exercise price provisions the exercise of the Series A Warrants, or application of any of the Evergreen Increases. See below
under the heading “—Potential Adverse Effects of the Approval of the Amended 2023 Plan” for more information.

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Reasons for Amendment of the 2023 Plan

Our Board, the compensation committee and management
believe that the effective use of stock-based long-term incentive compensation is vital to our ability to achieve strong performance in
the future. The Amended 2023 Plan will maintain and enhance the key policies and practices adopted by our management and board of directors
to align employee and stockholder interests and to link compensation to Company performance. In addition, our future success depends,
in large part, upon our ability to maintain a competitive position in