Company: IXHL
Filing Date: 2025-04-17
Form Type: PRER14A
Source: 0001213900-25-033013
Chunk: 27

Company: Incannex Healthcare Inc.
Filing Date: 2025-04-17
Form: PRER14A
Chunk 27
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 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. As a result, the aggregate number of shares of common stock underlying
all of the Series A Warrants, may increase 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 provision. Assuming full adjustment of the exercise price to the Floor
Price, the aggregate number of shares of common stock issuable upon the exercise of all of the Series A Warrants pursuant to the zero
exercise price provisions therein would be 347,222,700.

:
Subject to the rules and regulations of Nasdaq, the Company may at any time during the term of the Series A Warrants, with the prior written
consent of the holders of the Series A Warrants representing at least a majority of the Series A Warrant Shares then underlying the Series
A Warrants, reduce the then current exercise price of the Series A Warrants to any amount and for any period of time deemed appropriate
by the board of directors of the Company.

While approval of this Proposal 1 will expressly
authorize the board of directors of the Company to reduce the exercise price of the Series A Warrants for any period of timed deemed appropriate
if the consent of the requisite holders of the Series A Warrants is obtained, the voluntary reduction and any other transaction that might
occur in connection with or close in time to the voluntary reduction would still be subject to Nasdaq Listing Rules and regulations as
may be in effect at the time of such reduction. As noted above, in approving this Proposal 1, stockholders are expressly approving the
issuance of the shares underlying the Series A Warrant at a price below the Minimum Price pursuant to Nasdaq Listing Rule 5635(d).

However, even if this Proposal No. 1 is approved,
other Nasdaq Listing Rules will still apply to any voluntary reduction to the extent shares of our common stock are the traded on Nasdaq
at the time of such voluntary reduction. For instance and by example only, such a reduction likely could