Company: IXHL
Filing Date: 2025-04-16
Form Type: S-1/A
Source: 0001213900-25-032577
Chunk: 24

Company: Incannex Healthcare Inc.
Filing Date: 2025-04-16
Form: S-1/A
Chunk 24
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 Stock to use for capital raising activities which greatly limits our
ability to raise capital to fund our operations and we are contractually prohibited pursuant to the terms of the March 2025 Purchase Agreements
from effecting a reverse stock split of our Common Stock 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 Nasdaq Listing Requirements
or we obtain a waiver from the selling stockholders who purchased at least 50.1% of the Shares and Pre-Funded Warrants sold in the Private
Placement. To date, we are not aware of any such changes. So, until such time as we otherwise have additional shares of authorized common
stock available (which may not occur), if the Stockholder Approval is not obtained, we will no longer be able to raise funds through the
issuance of shares of our common stock, including through the Sales Agreement, or through the issuance of instruments convertible into
shares of common stock at issuance and would have to raise funds through other means, including as debt financings or strategic transactions.
These other means may not be available to us or available to us on reasonable terms. To date, we are not profitable and do not expect
to be profitable in the near term. If we are unable to raise funds for this or any reason when and as needed to support our continued
research and development plans and our ongoing operations, we may be required to again pause our research and development programs, again
curtail our operations, enter into strategic transactions on unfavorable terms and/or cease our operations entirely. In addition, if our
stockholders fail to authorize us to complete a reverse stock split once we are free to do so in accordance with the terms of the March
2025 Purchase Agreement, we may fail to comply with the Nasdaq minimum bid price requirements which could subject shares of our Common
Stock to delisting. Further, pursuant to the terms of the Series A Warrants, if we fail to obtain the Stockholder Approval at the special
meeting, we are required to continue to seek approval of the Stockholder Approval every 60 days following such a failure. Failure to obtain
the Stockholder Approval and these circumstances would likely adversely affect our business, results of operations, prospects and the
price of our Common Stock.

A reverse stock split could cause our stock price to decline relative to its value before the split and decrease the liquidity of shares of our Common Stock