Company: IXHL
Filing Date: 2025-04-17
Form Type: PRER14A
Source: 0001213900-25-033013
Chunk: 18

Company: Incannex Healthcare Inc.
Filing Date: 2025-04-17
Form: PRER14A
Chunk 18
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 we are unlikely to receive any cash proceeds from the
exercise of the Series A Warrants. Similarly, as a result of the zero exercise price provisions, it is unlikely investors would choose
to exercise the Series A Warrants on a “net” or “cashless” basis that would reduce the number of shares issuable
upon exercise of the Series A Warrant by a number of shares having an aggregate value equal to the exercise price. The number of shares
issuable upon exercise of the Series A Warrants is subject to adjustment in connection with the adjustment of the exercise price of the
Series A Warrants, as described below, to a number of shares that is up to 10 times the number of shares underlying the Series A Warrant
at issuance. The number of shares issuable pursuant to the Series A Warrants, including by way of its zero exercise price provisions,
is also subject to proportional adjustments for stock splits, dividends, reclassifications and similar adjustments.

The Pre-Funded Warrants and Series A Warrants
may not be exercised if the aggregate number of shares of common stock beneficially owned by the holder thereof immediately following
such exercise would exceed a specified beneficial ownership limitation (4.99% or 9.99%); provided, however, that a holder may increase
or decrease the beneficial ownership limitation by giving 61 days’ notice to the Company, but not to any percentage in excess of
9.99%.

On March 10, 2025 and in connection with the Private
Placement, we entered into a registration rights agreement with the investors pursuant to which we agreed to register for resale the shares
of common stock issued and Warrants Shares issuable in connection with the Private Placement. We have filed a resale registration statement
and intend to file an additional resale registration statements following receipt of the Warrant Stockholder Approval to fulfill these
obligations.

On March 7, 2025, we also entered into a placement
agency agreement (the “Placement Agreement”) with R.F. Lafferty & Co., Inc. (“R.F. Lafferty”), pursuant to
which we engaged R.F. Lafferty to act as sole placement agent in connection with the Private Placement. As compensation to the placement
agent, we paid R.F. Lafferty commission equal to 7.0% of the aggregate gross proceeds from the Private Placement. In addition, we agreed
to reimburse R.F. Lafferty for certain of out-of-pocket expenses, including for reasonable