Company: IXHL
Filing Date: 2025-03-18
Form Type: PRE 14A
Source: 0001213900-25-024754
Chunk: 26

Company: Incannex Healthcare Inc.
Filing Date: 2025-03-18
Form: PRE 14A
Chunk 26
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 issued Pre-Funded Warrants to purchase up to 1,887,045 shares of our
common stock and Series A Warrants to purchase up to 11,574,090 shares of our common stock. The alternate cashless exercise of the Series
A Warrants (assuming cashless exercise with a full share adjustment reflective of the Floor Price of $0.216) could result in the issuance
of up to 347,222,700 shares of our common stock. An increase in the authorized shares of common stock is necessary to allow for the issuance
of the Series A Warrant Shares. Both Proposal Nos. 1 and 2 must be approved in order for the Series A Warrants to become exercisable upon
completion of the Special Meeting.

Reasons for the Authorized Share Increase

Our board of directors believes
it to be in our best interest to have sufficient additional authorized but unissued shares of common stock available in order to meet
our obligations under the terms of the Series A Warrants and to provide flexibility for corporate action in the future. Management believes
that the availability of additional authorized shares for issuance from time-to-time in our board of directors’ discretion in connection
with future financings, investment opportunities, stock splits or dividends, equity incentive plan arrangements or for other corporate
purposes is desirable in order to avoid repeated separate amendments to our Amended and Restated Certificate of Incorporation and the
delay and expense incurred in holding special meetings of the stockholders to approve such amendments. Further and as noted in Proposal
No. 1, if we do not obtain the approval of the share increase, the Series A Warrants will not become exercisable following the Special
Meeting and we will be required, under the terms of the Series A Warrants to seek approval again every 60 days following such a failure
(and following any such future failure) until the requisite approvals are obtained. So, if we fail to obtain the Warrant Stockholder Approval
(including approval of this Proposal No. 2) at the Special Meeting and are forced to hold additional meetings of stockholders to obtain
the Warrant Stockholder Approval or approval of this share increase, the costs and expenses associated with again or repeatedly seeking
these approvals could materially adversely impact our ability to fund or continue our operations, including the advancement of our clinical
trials, regulatory approvals for, and commercialization of our products and product candidates.

In the Private Placement,
we agreed not to complete a reverse stock split during the 180-day period following