Company: IXHL
Filing Date: 2025-05-16
Form Type: DEFA14A
Source: 0001213900-25-044454
Chunk: 4

Company: Incannex Healthcare Inc.
Filing Date: 2025-05-16
Form: DEFA14A
Chunk 4
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dated as of April 7, 2025, by and between the Company and A.G.P/Alliance Global Partners (the “Sales Agreement”) up to $12,499,828
during the period commencing on the date of the Letter Agreement and ending the earlier of the date the Company raises $12,499,828 in
net proceeds under the Sales Agreement and the date prior to which the Company receives the requisite stockholder approval for the exercise
of the Series A Warrants (the “Stockholder Approval”), the Company will pay to the Warrant Holders, with each Warrant Holder
receiving its pro rata portion of these net proceeds up to an amount equal to each Warrant Holder’s respective subscription amount
under its Securities Purchase Agreement (the “Warrant Cancellation Payment”).

In consideration of the Warrant
Cancellation Payment, the Warrant Holder’s original number of Warrant Shares (as defined in the Series A Warrant) would be reduced
by a number of shares obtained by dividing the Warrant Cancellation Payment by $2.14, rounded down to the nearest whole share (the “Warrant
Cancellation”). The Warrant Cancellation will have the same effect as cancellation of the original Series A Warrant and the Warrant
Holder will be issued new Series A Warrant evidencing the new Warrant Share amount. For example, if the Company were to pay to the Warrant
Holders an aggregate of $12.5 million in Net Proceeds, which would represent the entire aggregate subscription amount under all of the
Warrant Holders Securities Purchase Agreements, the aggregate number of shares underlying all of the Series A Warrants would be reduced
by 5,833,333 Warrant Shares, from 11,574,090 Warrant Shares to 5,740,757 Warrant Shares, in each case, prior to any of the adjustments
set forth in the Series A Warrants or application of their zero exercise price provisions (referred to in the text of the Series A Warrants
as “alternative cashless exercise”). Assuming full adjustment of the exercise price of the Series A Warrant to the floor price
of $0.216 per share and exercise pursuant to the zero exercise price provisions of the Series A Warrants, the aggregate number of shares
underlying all of the Series A Warrants would be reduced by 175,000,000 Warrant Shares, from 347,222,700 Warrant Shares to 172,222,