Company: IXHL
Filing Date: 2025-04-28
Form Type: DEF 14A
Source: 0001213900-25-036057
Chunk: 40

Company: Incannex Healthcare Inc.
Filing Date: 2025-04-28
Form: DEF 14A
Chunk 40
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3 Plan is approved by stockholders, the equity overhang would be 22.3% as of immediately following such approval. The foregoing calculation of the equity overhang does not take into account the up to 347,222,700shares of our common stock issuable upon exercise of the Series A Warrants, assuming full adjustment of the exercise price equal to the Floor Price of $0.216 per share and exercise pursuant to the zero exercise price provisions the exercise of the Series A Warrants, or application of any of the Evergreen Increases. See below under the heading “— Potential Adverse Effects of the Approval of the Amended 2023 Plan” for more information. Reasons for Amendment of the 2023 Plan Our Board, the compensation committee and management believe that the effective use of stock -basedlong -termincentive compensation is vital to our ability to achieve strong performance in the future. The Amended 2023 Plan will maintain and enhance the key policies and practices adopted by our management and board of directors to align employee and stockholder interests and to link compensation to Company performance. In addition, our future success depends, in large part, upon our ability to maintain a competitive position in attracting, retaining and motivating key personnel. We believe that the increase in the number of shares available for issuance under our Amended 2023 Plan and the addition of the Evergreen Provision is essential to permit our management to continue to provide long -term, equity -basedincentives to present and future key employees, consultants and directors. Our board of directors believes that the number of shares currently remaining available for issuance pursuant to future awards under the 2023 Plan is not sufficient for future granting needs. Our board of directors currently believes that if the Amended 2023 Plan is approved by stockholders, the additional 2,700,000shares available for issuance under the Amended 2023 Plan plus the Evergreen Provision will result in an adequate number of shares of common stock being available for future awards under the Amended 2023 Plan for approximately eight additional years following the current year. Potential Adverse Effects of the Approval of the Amended 2023 Plan Following approval of the Equity Incentive Plan Proposal, existing stockholders may suffer substantial dilution in their ownership interests as a result of the potential issuance of shares of common stock pursuant to awards under the Amended 2023 Plan and application of its Evergreen Provision. The Evergreen Provision contemplates the following Evergreen Increases: the number of shares authorized for issuance