Company: IXHL
Filing Date: 2025-04-07
Form Type: 424B5
Source: 0001213900-25-029414
Chunk: 21

Company: Incannex Healthcare Inc.
Filing Date: 2025-04-07
Form: 424B5
Chunk 21
---
 funds through the issuance of equity or otherwise use our common stock as consideration will be reduced. A low price
for our equity may negatively impact our ability to access additional debt capital. These factors may limit our ability to implement our
operating and growth plans.

<div align='center'>S-9</div>

In the past, following periods
of volatility in the market price of a company’s securities, stockholders have often instituted class action securities litigation
against those companies. Such litigation, if instituted, could result in substantial costs and diversion of management attention and resources,
which could significantly harm our profitability and reputation. In addition, such securities litigation often has ensued after a reverse
merger or other merger and acquisition activity of the type engaged by us. Such litigation, if brought, could impact negatively our business.

We have broad discretion in the use of the net proceeds from this offering and may not use them effectively.

Our management will have
broad discretion in the application of the net proceeds from this offering, including for any of the purposes described in the section
entitled “Use of Proceeds,” and you will not have the opportunity as part of your investment decision to assess whether the
net proceeds are being used appropriately. Because of the number and variability of factors that will determine our use of the net proceeds
from this offering, their ultimate use may vary substantially from their currently intended use. Our management might not apply our net
proceeds in ways that ultimately increase the value of your investment. We expect to use the net proceeds from this offering, if any,
for general corporate and working capital purposes, including funding our research and development. The failure by our management to apply
these funds effectively could harm our business. Pending their use, we may invest the net proceeds from this offering in short- and intermediate
term, investment-grade, interest-bearing securities. These investments may not yield a favorable return to our stockholders. If we do
not invest or apply the net proceeds from this offering in ways that enhance stockholder value, we may fail to achieve expected financial
results, which could cause our stock price to decline.

The actual number of shares we will issue under the Sales Agreement and the gross proceeds resulting therefrom, at any one time or in total, is uncertain.

Subject to certain limitations
in the Sales Agreement and compliance with applicable law, we have the discretion to deliver placement notice to A.G.P. to sell shares
of our common stock at any time throughout the term of the Sales Agreement. However, until