Company: IXHL
Filing Date: 2025-04-28
Form Type: 424B3
Source: 0001213900-25-036065
Chunk: 23

Company: Incannex Healthcare Inc.
Filing Date: 2025-04-28
Form: 424B3
Chunk 23
---
.

We intend to seek approval
for a reverse stock split of our common stock at a special meeting of our stockholders. The primary intent for any reverse stock split
that we may complete would be an anticipated increase in the price of our Common Stock immediately following and resulting from a reverse
stock split due to a reduction in the number of issued and outstanding shares of our Common Stock to help us meet Nasdaq’s minimum
bid price requirements discussed above. It cannot be assured that a reverse stock split will result in any sustained proportionate increase
in the market price of our Common Stock, which is dependent upon many factors, including the outcome of our research and development efforts,
our results of operations, general market conditions, pending dilution and our prospects for future success, which are unrelated to the
number of shares of our Common Stock outstanding. Many investors, analysts and other stock market participants have negative perceptions
of reverse stock splits. It is not uncommon for the market price of a company’s common stock to disproportionately decline in the
period following a reverse stock split. Trading volumes following reverse stock splits for companies have historically varied, but there
is often a decrease in trading volume following completion of a reverse stock split. If such a decrease in volume were to occur, the liquidity
of the shares of our Common Stock would be adversely affected. In addition, a reverse stock split may increase the number of stockholders
who own odd lots (less than 100 shares) of our Common Stock, creating the potential for such stockholders to experience an increase in
the cost of selling their shares and greater difficulty effecting such sales. Finally, A reverse stock split may not result in a permanent
increase in the market price of our common stock, which will continue to be dependent on many factors, including general economic, market
and industry conditions and other factors detailed from time to time in the reports we file with the SEC. Even if we are able to obtain
approval and complete a reverse stock split in accordance with the terms and restrictions of the March 2025 Purchase Agreements (which
we may not be able to do), there can be no assurance this reverse stock split would result in a sustained daily closing price in excess
of a $1.00 for the 10 or 20 trading days required by the Nasdaq Staff for us to regain compliance with Nasdaq’s bid price requirements.
In addition, the Reverse Stock Split may result in an adjustment to the exercise price (down to as low as the Floor Price of $0.216