Company: IXHL
Filing Date: 2025-03-18
Form Type: PRE 14A
Source: 0001213900-25-024754
Chunk: 23

Company: Incannex Healthcare Inc.
Filing Date: 2025-03-18
Form: PRE 14A
Chunk 23
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 Series A Warrant Shares issuable upon exercise of the Series A Warrants together with the additional shares of our
common stock that may become issuable upon adjustments provided for under the Series A Warrants and the provisions of the Series A Warrants
indicated above. Until we obtain the Warrant Stockholder Approval in order to comply with Nasdaq Listing Rule 5635(d), the Series A Warrants
are not exercisable.

Importantly and as noted
above, if we fail to obtain the full Warrant Stockholder Approval, we are required to seek stockholder approval every 60 days following
such a failure (and following any such future failure) until we obtain the full Warrant Stockholder Approval required for the full exercise
of the Series A Warrants pursuant to the terms of the Series A Warrants and failure to comply with this term could expose the Company
to liability. So, if we fail to obtain the Warrant Stockholder Approval at the Special Meeting and are forced to hold additional meetings
of stockholders to obtain the Warrant Stockholder Approval, the costs and expenses associated with again or repeatedly seeking the Warrant
Stockholder Approval 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.

Potential Adverse Effects of the Approval of the Warrant Stockholder Approval Provisions

Following approval of the
Issuance Proposal, existing stockholders will likely suffer substantial dilution in their ownership interests as a result of the potential
issuance of shares of common stock upon exercise of the Series A Warrants. As of the closing on March 10, 2025, we 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 exercise of the Series A Warrants (assuming an exercise price equal to the Floor Price of $0.216 per share and application of the
related share adjustment and alternative cashless exercise provisions in the Series A Warrants) could result in the issuance of up to
approximately 347,222,700 additional shares of our common stock upon cashless exercise of the Series A Warrants, and the ownership interest
of our existing stockholders would be correspondingly reduced.

The sale into the public
market of these shares, or the perception that such sales could occur, could materially and adversely affect