Company: IXHL
Filing Date: 2025-04-16
Form Type: S-1/A
Source: 0001213900-25-032577
Chunk: 20

Company: Incannex Healthcare Inc.
Filing Date: 2025-04-16
Form: S-1/A
Chunk 20
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 a deficiency letter from the Staff. While the Staff may provide us with a 180-calendar day grace period to regain compliance with the bid price requirement, we may also need to be in compliance with this bid price requirement and other Nasdaq listing requirements to transfer the listing of the shares of our Common Stock to the Nasdaq Capital Market. Many companies seek to cure this bid price deficiency utilizing a reverse stock split. However, such a reverse stock split of our Common Stock would require prior stockholder approval (which may not be obtained), and the terms of the March 2025 Purchase Agreements prohibit us from effecting a reverse stock split 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. To date, we are not aware of any such changes. In order to obtain a waiver of these provisions to effect a reverse stock split, we would need to obtain the waiver of the selling stockholders who purchased at least 50.1% of the Shares and Pre-Funded Warrants issued in the Private Placement.

In the event of a delisting notice, we would typically have an opportunity to appeal such decision to the Nasdaq Hearing Panel or take other measures to preserve the listing of our Common Stock on Nasdaq, but these measures and any appeal may not be successful. If our Common Stock is delisted by Nasdaq, our Common Stock may be eligible to trade on an over-the-counter quotation system, where an investor may find it more difficult to sell our Common Stock or obtain accurate quotations as to the market value of our Common Stock. We cannot ensure that our Common Stock, if delisted from the Nasdaq Global Market, will be listed on another Nasdaq market tier, any national securities exchange or quoted on an over-the counter quotation system.

In the event we are delisted from Nasdaq, the only established trading market for our common stock would be eliminated, and we would be forced to list our shares on the OTC Markets or another quotation medium, depending on our ability to meet the specific listing requirements of those quotation systems. As a result, an investor would likely find it more difficult to trade or obtain accurate price quotations for our shares. Delisting would likely also reduce the visibility, liquidity, and value of our common stock, reduce institutional investor interest in our company, and may increase the volatility of our common stock. Delisting could also cause a loss of confidence of potential industry partners