Company: IXHL
Filing Date: 2025-04-17
Form Type: PRER14A
Source: 0001213900-25-033013
Chunk: 40

Company: Incannex Healthcare Inc.
Filing Date: 2025-04-17
Form: PRER14A
Chunk 40
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 of awards under the Amended 2023 Plan will be increased by 2,700,000 shares of common 
 stock; and                                                                                                                         |

The 2023 Plan was approved by our board of
directors and stockholders in November 2023. By its terms, the 2023 Plan may be amended by the board of directors provided that any
amendment that the board of directors determines requires stockholder approval is subject to receiving such stockholder approval.
Approval of the Amended 2023 Plan by our stockholders is required by the listing rules of The Nasdaq Stock Market. In addition,
stockholder approval is required in order to ensure favorable federal income tax treatment for grants of incentive stock options
under Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”). We do not currently have enough
authorized shares of our common stock to accommodate both the Amended 2023 Plan and the maximum number of shares issuable upon
exercise of the Series A Warrants. Accordingly, assuming this Proposal No. 3 is approved by our stockholders, the Amended 2023 Plan
will only become effective if and when we have enough available authorized shares of common stock under our Amended and Restated
Certificate of Incorporation to accommodate the number of shares then reserved under the Amended 2023 Plan. We will have enough
available authorized shares to accommodate the number of shares reserved under the Amended 2023 Plan if we either (i) obtain
approval of Proposal No. 2 (the Charter Amendment Proposal) and file the Certificate of Amendment to our Amended and Restated
Certificate of Incorporation contemplated thereby or (ii) obtain approval of Proposal No. 4 (the Reverse Stock Split Proposal) and
file the Certificate of Amendment to our Amended and Restated Certificate of Incorporation contemplated thereby (at a reverse stock
split ratio at or greater than 1-for-4.5) when we are permitted to under the Purchase Agreements. Under the terms of the Purchase
Agreements, we are prohibited from completing 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 the
listing requirements of the trading market (currently Nasdaq) or we obtain a waiver from the investors who purchased at least 50.1%
of the Shares and Pre-Funded Warrants sold in the Private Placement.