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

Company: Incannex Healthcare Inc.
Filing Date: 2025-04-16
Form: S-1/A
Chunk 25
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. Completion of a reverse stock split would not ensure Nasdaq compliance.

We intend to seek
approval for a reverse stock split of our common stock at a special meeting of our stockholders. The primary intent for any reverse
stock split that we may complete would be an anticipated increase in the price of our Common Stock immediately following and
resulting from a reverse stock split due to a reduction in the number of issued and outstanding shares of our Common Stock to help
us meet Nasdaq’s minimum bid price requirements discussed above. It cannot be assured that a reverse stock split will result
in any sustained proportionate increase in the market price of our Common Stock, which is dependent upon many factors, including the
outcome of our research and development efforts, our results of operations, general market conditions, pending dilution and our
prospects for future success, which are unrelated to the number of shares of our Common Stock outstanding. Many investors, analysts
and other stock market participants have negative perceptions of reverse stock splits. It is not uncommon for the market price of a
company’s common stock to disproportionately decline in the period following a reverse stock split. Trading volumes following
reverse stock splits for companies have historically varied, but there is often a decrease in trading volume following completion of
a reverse stock split. If such a decrease in volume were to occur, the liquidity of the shares of our Common Stock would be
adversely affected. In addition, a reverse stock split may increase the number of stockholders who own odd lots (less than 100
shares) of our Common Stock, creating the potential for such stockholders to experience an increase in the cost of selling their
shares and greater difficulty effecting such sales. Finally, A reverse stock split may not result in a permanent increase in the
market price of our common stock, which will continue to be dependent on many factors, including general economic, market and
industry conditions and other factors detailed from time to time in the reports we file with the SEC. Even if we are able to obtain
approval and complete a reverse stock split in accordance with the terms and restrictions of the March 2025 Purchase Agreements
(which we may not be able to do), there can be no assurance this reverse stock split would result in a sustained daily closing price
in excess of a $1.00 for the 10 or 20 trading days required by the Nasdaq Staff for us to regain compliance with Nasdaq’s bid
price requirements. In addition, the Reverse Stock Split may result in