Company: IXHL
Filing Date: 2025-04-17
Form Type: PRER14A
Source: 0001213900-25-033013
Chunk: 36

Company: Incannex Healthcare Inc.
Filing Date: 2025-04-17
Form: PRER14A
Chunk 36
---
 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 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. To date, we are not aware of any such changes to applicable law. So, while a reverse stock split would
(unless the terms of the reverse stock split provided otherwise) have the effect of increasing our available authorized shares of
common stock, we may be unable to complete a reverse stock split prior to September 6, 2025. Until such time as we otherwise have
additional shares of authorized common stock available (which