Company: IXHL
Filing Date: 2025-04-07
Form Type: 424B5
Source: 0001213900-25-029414
Chunk: 17

Company: Incannex Healthcare Inc.
Filing Date: 2025-04-07
Form: 424B5
Chunk 17
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 number of Series A Warrant Shares issuable
under the Series A Warrants will be increased such that the aggregate exercise price of a Series A Warrants (adjusted for any exercises
by a holder prior to this adjustment) will remain unchanged following such adjustment. The exercise of the Series A Warrants (assuming
an exercise price equal to the Floor Price of $0.216 per share and application of the related share adjustment and alternative cashless
exercise provisions in the Series A Warrants) could result in the issuance of up to approximately 347,222,700 additional shares of our
common stock upon zero strike price exercise of the Series A Warrants, and the ownership interest of our existing stockholders would be
correspondingly reduced.

If a zero strike price exercise occurs,
this will result in substantial dilution to stockholders, and if such zero strike price exercise occurs after the
Release Date, the dilution will be even more substantial. These exercises would increase the number of publicly-traded shares,
would likely cause downward pricing pressure and depress the market price of the our common stock. Moreover and even absent
these exercises, the perceived risk of dilution and the resulting downward pressure on our common stock price could encourage investors
to engage in short sales of its common stock, which could further contribute to price declines. These exercises will likely make it more
difficult for us to raise additional financing in through the sale of equity or equity-related securities in the future at a time and/or
at a price that we deem reasonable or appropriate, or at all.

You will experience immediate and substantial dilution in the net tangible book value per share of the common stock you purchase.

The offering price per share
in this offering may exceed the net tangible book value per share of our common stock outstanding prior to this offering. Assuming that
an aggregate of 32,240,144 shares of our common stock are sold at the assumed offering price of $0.5201 per share (the last reported sale
price of our common stock on the Nasdaq Global Market on April 4, 2025) and after deducting commissions and estimated aggregate offering
expenses payable by us, you will experience immediate dilution of $0.1028 per share, representing the difference between our pro forma
as adjusted net tangible book value per share as of December 31, 2024 after giving effect to this offering and the assumed offering price.
See the section entitled “Dilution” appearing elsewhere in this prospectus supplement for a more detailed