Company: IXHL
Filing Date: 2025-04-17
Form Type: PRER14A
Source: 0001213900-25-033013
Chunk: 57

Company: Incannex Healthcare Inc.
Filing Date: 2025-04-17
Form: PRER14A
Chunk 57
---
 other factors, including
our ability to successfully accomplish our research and development milestones, market conditions, and the market perception of our business. You should also
keep in mind that the implementation of the Reverse Stock Split does not have an effect on the actual or intrinsic value of our business
or a stockholder’s proportional ownership in our company (subject to the treatment of fractional shares). However, should the overall
value of our common stock decline after the proposed Reverse Stock Split, then the actual or intrinsic value of the shares of our common
stock held by you will also proportionately decrease as a result of the overall decline in value.

While our board of directors has proposed
the Reverse Stock Split to bring the price of our common stock back above $1.00 per share to meet the requirements for the continued
listing of our common stock on Nasdaq, there is no guarantee that the price of our common stock will not decrease in the future, or
that our common stock will remain in compliance with Nasdaq listing standards. Additionally, there can be no guarantee that the
closing bid price of our common stock will remain at or above $1.00 for 10 (or in Nasdaq's discretion, 20) consecutive trading days,
whether following the Reverse Stock Split or otherwise, which is required to cure our current Nasdaq listing standard
deficiency.

Further, the liquidity of our common stock may
be harmed by the Reverse Stock Split given the reduced number of shares that would be outstanding after the Reverse Stock Split, particularly
if the expected increase in stock price as a result of the Reverse Stock Split is not sustained. For instance, the 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 sales. If we effect the Reverse Stock Split,
the resulting per-share stock price may nevertheless fail to attract institutional investors and may not satisfy the investing guidelines
of such investors and, consequently, the trading liquidity of our common stock may not improve.

In addition, the Reverse Stock Split may result
in adjustment to the exercise price (down to as low as the Floor Price of $0.216) and number of shares underlying the Series A Warrants
(from 11,574,090 to up to 115,740,900, assuming full adjustment of the exercise price to the Floor Price and before giving effect to the
zero exercise price