Company: IXHL
Filing Date: 2025-04-17
Form Type: PRER14A
Source: 0001213900-25-033013
Chunk: 23

Company: Incannex Healthcare Inc.
Filing Date: 2025-04-17
Form: PRER14A
Chunk 23
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 with its terms.

Exercisability. The Pre-Funded Warrants
were and are exercisable at any time after their original issuance until they are exercised in full. The Series A Warrants are not currently
exercisable, will be exercisable following and subject to the Warrant Stockholder Approval and will expire two and one-half (2.5) years
after the date we obtain the full Warrant Stockholder Approval. Each of the Warrants will be exercisable, at the option of each holder,
in whole or in part by delivering to us a duly executed exercise notice accompanied by payment in full in immediately available funds
for the number of shares of common stock subscribed for upon such exercise (except in the case of a cashless exercise as discussed below).

Cashless Exercise. The
Pre-Funded Warrants are exercisable by cashless exercise, and if a registration statement registering the issuance of the shares of common
stock underlying the Series A Warrants under the Securities Act is not effective or available following the date of receipt of the full
Warrant Stockholder Approval, the holder may, in its sole discretion, elect to exercise the Warrants through a cashless exercise. Upon
cashless exercise the holder would receive upon such exercise the net number of shares of common stock equal to the quotient obtained
by dividing [(A-B) (X)] by (A), where (A) is the volume-weighted average price per share of common stock, (B) is the exercise price of
the Warrant then in effect and (X) is the number of Warrant Shares that would be issuable upon exercise of the Warrant in accordance with
the terms of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise. Given the zero exercise price provisions of the Series A Warrants described below, it is unlikely the Series A Warrants would be exercised
on a cash or cashless basis.

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Series A Warrant Zero Exercise Price Provision.
The Series A Warrants also include a zero exercise price provision (referred to in the text of the Series A Warrants as an “alternative
cashless exercise”) where, following the Warrant Stockholder Approval (even if a registration statement registering the issuance
or resale of shares of common stock underlying the Series A Warrant is effective), the holder of a Series A Warrant has the right to receive,
without paying any additional cash or consideration to the Company, an aggregate number