Company: IXHL
Filing Date: 2025-04-28
Form Type: DEF 14A
Source: 0001213900-25-036057
Chunk: 34

Company: Incannex Healthcare Inc.
Filing Date: 2025-04-28
Form: DEF 14A
Chunk 34
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1 -for-4.5) would also allow us to have enough authorized shares of our common stock to effect the Amended 2023 Plan if approved in Proposal No.3, but we are contractually prohibited from completing a reverse stock split prior to September 6, 2025, unless we are expressly required to effect a reverse stock split as a result of changes in applicable laws effected after the closing of the Private Placement related to the listing requirements of the trading market (currently Nasdaq) or we obtain a waiver from the investors who purchased at least 50.1% of the Shares and Pre -FundedWarrants sold in the Private Placement. Reasons for the Authorized Share Increase Our board of directors believes it to be in our best interest to have sufficient additional authorized but unissued shares of common stock available in order to meet our obligations under the terms of the Series A Warrants and to provide flexibility for corporate action in the future. Management believes that the availability of additional authorized shares for issuance from time -to -timein our board of directors’ discretion in connection with future financings, investment opportunities, stock splits or dividends, equity incentive plan arrangements or for other corporate purposes is desirable in order to avoid repeated separate amendments to our Amended and Restated Certificate of Incorporation and the delay and expense incurred in holding special meetings of the stockholders to approve such amendments. Further and as noted in Proposal No.1, if we do not obtain the approval of the share increase, the Series A Warrants will not become exercisable following the Special Meeting and we will be required, under the terms of the Series A Warrants to seek approval again every 60 days following such a failure (and following any such future failure) until the requisite approvals are obtained. So, if we fail to obtain the Warrant Stockholder Approval (including approval of this Proposal No. 2) at the Special Meeting and are forced to hold additional meetings of stockholders to obtain the Warrant Stockholder Approval or approval of this share increase, the costs and expenses associated with again or repeatedly seeking these approvals could materially adversely impact our ability to fund or continue our operations, including the advancement of our clinical trials, regulatory approvals for, and commercialization of our products and product candidates. 19 In the Private Placement, we agreed not to complete a reverse stock split prior to September 6, 2025 unless we are expressly required to effect a reverse split as a result of changes in applicable laws effected after the closing of the Private Placement related to the listing requirements