Company: IXHL
Filing Date: 2025-04-28
Form Type: 424B3
Source: 0001213900-25-036065
Chunk: 22

Company: Incannex Healthcare Inc.
Filing Date: 2025-04-28
Form: 424B3
Chunk 22
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 our ability to raise capital
to fund our operations and we are contractually prohibited pursuant to the terms of the March 2025 Purchase Agreements from effecting
a reverse stock split of our Common Stock 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 or we
obtain a waiver from the selling stockholders who purchased at least 50.1% of the Shares and Pre-Funded Warrants sold in the Private Placement.
To date, we are not aware of any such changes. So, until such time as we otherwise have additional shares of authorized common stock available
(which may not occur), if the Stockholder Approval is not obtained, we will no longer be able to raise funds through the issuance of shares
of our common stock, including through the Sales Agreement, or through the issuance of instruments convertible into shares of common stock
at issuance and would have to raise funds through other means, including as debt financings or strategic transactions. These other means
may not be available to us or available to us on reasonable terms. To date, we are not profitable and do not expect to be profitable in
the near term. If we are unable to raise funds for this or any reason when and as needed to support our continued research and development
plans and our ongoing operations, we may be required to again pause our research and development programs, again curtail our operations,
enter into strategic transactions on unfavorable terms and/or cease our operations entirely. In addition, if our stockholders fail to
authorize us to complete a reverse stock split once we are free to do so in accordance with the terms of the March 2025 Purchase Agreement,
we may fail to comply with the Nasdaq minimum bid price requirements which could subject shares of our Common Stock to delisting. Further,
pursuant to the terms of the Series A Warrants, if we fail to obtain the Stockholder Approval at the special meeting, we are required
to continue to seek approval of the Stockholder Approval every 60 days following such a failure. Failure to obtain the Stockholder Approval
and these circumstances would likely adversely affect our business, results of operations, prospects and the price of our Common Stock.

A reverse stock split could cause our stock price to decline relative to its value before the split and decrease the liquidity of shares of our Common Stock. Completion of a reverse stock split would not ensure Nasdaq compliance