Company: IXHL
Filing Date: 2025-03-24
Form Type: S-3
Source: 0001013762-25-001587
Chunk: 9

Company: Incannex Healthcare Inc.
Filing Date: 2025-03-24
Form: S-3
Chunk 9
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 such event), then, at the close of trading on the last day of the Share
Combination Adjustment Period, the exercise price then in effect on such fifth trading day will be reduced (but in no event increased)
to the Event Market Price and the number of Series A Warrant Shares issuable upon exercise of a Series A Warrant (such resulting number,
the “Share Combination Issuable Shares”) will be increased such that the aggregate exercise price, after taking into account
the decrease in the exercise price, will be equal to the aggregate exercise price on the date of issuance of the Series A Warrants for
the remaining Series A Warrant Shares then issuable pursuant to the Series A Warrant; provided, however, that in no event will the Event
Market Price be lower than the Floor Price; and provided further that notwithstanding the foregoing, if one or more Share Combination
Events occurred prior to the Warrant Stockholder Approval being obtained and the reduction of the exercise price was limited by clause
(i) of the definition of Floor Price, once the Warrant Stockholder Approval is obtained, the Exercise Price will automatically be reduced
to equal the greater of (x) the lowest Event Market Price with respect to any Share Combination Event that occurred prior to the Warrant
Stockholder Approval being obtained, and (y) the price determined by reference to clause (ii) of the definition of Floor Price. If one
or more Share Combination Events occurs prior to the Warrant Stockholder Approval being obtained and the reduction of the exercise price
to the Event Market Price, once the Warrant Stockholder Approval is obtained, the exercise price will automatically be reduced to the
lowest Event Market Price with respect to any Share Combination Event that occurred prior to the Warrant Stockholder Approval being obtained
and the Share Combination Issuable Shares will automatically be adjusted to equal the highest such number with respect to any Share Combination
Event that occurred prior to the Stockholder Approval being obtained, provided that in no event will the exercise price be reduced below
the Floor Price.

Adjustment of the Series A
Warrant exercise price is currently subject to a floor price of $1.08 per share and such floor price will be adjusted to $0.216 per share
following stockholder approval (such price, the “Floor Price”).

Assuming full alternative cashless exercise of the Series A Warrants at the Floor Price, we would issue 347,222,700 shares of our common
stock. However, only 65,971,805 shares