Company: IXHL
Filing Date: 2025-03-18
Form Type: PRE 14A
Source: 0001213900-25-024754
Chunk: 27

Company: Incannex Healthcare Inc.
Filing Date: 2025-03-18
Form: PRE 14A
Chunk 27
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 closing of the Private Placement 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 the Nasdaq Stock Market LLC). 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 are unable to complete a reverse stock split during this 180-day period. Until such time as we otherwise have additional shares of
authorized common stock available (which may not occur), if this Proposal No. 2 is not approved, we will no longer be able to raise funds
through the issuance of shares of our common stock 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.

<div align='center'>15</div>

Potential Adverse Effects of the Share Increase

We will not solicit further
authorization by vote of the stockholders for the issuance of the additional shares of common stock proposed to be authorized, except
as required by law, regulatory authorities or rules of the Nasdaq or any other stock exchange on which our shares may then be listed.
The issuance of additional shares of common stock will likely have the effect of substantially diluting existing stockholder earnings
per share, book value per share and voting power. Our stockholders do not have any preemptive right to purchase or subscribe for any part
of any new or additional issuance of our securities by virtue of their holding shares of our common stock.

Current Plans, Proposals or Arrangements to Issue Shares of Common Stock

As noted above, as of March
12, 2025, there were (i) 27,546,753 shares of our common stock were issued and outstanding, (ii) restricted stock units outstanding representing
the contingent right to receive an aggregate of 670,469 shares of common stock, (