Company: IXHL
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-013783
Chunk: 151

Company: Incannex Healthcare Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 3
Chunk 151
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 securities and the
ability of investors to dispose of, or obtain accurate quotations as to the market value of our Common Stock. 

Our Common Stock is currently listed on the Nasdaq
Global Market. Continued listing of a security on the Nasdaq Stock Market is conditioned upon compliance with various continued listing
standards for the applicable market tier. On January 3, 2025, we received a letter (the “Notice”) from Nasdaq notifying us
that, we were not in compliance with Nasdaq Listing Rule 5450(b)(2)(A) (the “Listing Rule”), which requires us to maintain
a minimum Market Value of Listed Securities (“MLVS”) of at least $50.0 million. The Notice stated that we have 180 calendar
days, or until July 2, 2025, to regain compliance with the Listing Rule. There is no immediate effect on the trading of our Common Stock.
To regain compliance, our MVLS must meet or exceed $50.0 million for a minimum of ten consecutive business days during the 180-day compliance
period ending on July 2, 2025. 

We are actively monitoring our stock price and
our MLVS and will consider any and all options available to us to maintain or, if necessary, regain compliance, including, to the extent
we may then be eligible, listing on the Nasdaq Capital Market. There can be no assurance, however, that we will be able to maintain or,
if necessary, regain compliance and meet Nasdaq’s continued listing requirements for any market tier when or as needed. To the extent
that we are unable to maintain or, if necessary, regain compliance with the Listing Rule or the other requirements of Nasdaq for
continued listing, there is a risk that our Common Stock may be delisted from Nasdaq. Delisting from Nasdaq may limit the range and
attractiveness of strategic alternatives that we are able to consider, adversely affect our ability to raise additional financing through
the public or private sale of equity securities, significantly affect the ability of investors to trade our securities, or negatively
affect the value and liquidity of our Common Stock.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

As described in Note 2 of the Condensed Consolidated
Financial Statements included in this Quarterly Report on 10-Q, we issued 142,403 shares of Common Stock to Arena Global on December 9,
2024 and issued a warrant to Arena Global