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

Company: Incannex Healthcare Inc.
Filing Date: 2025-04-17
Form: PRER14A
Chunk 17
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” and together with the Pre-Funded Warrants, the “Warrants”) to purchase up to 11,574,090 shares
of our common stock, subject to adjustment as described therein to up to an aggregate of 347,222,700 shares of common stock assuming full
adjustment of the exercise price to the Floor Price and exercise pursuant to the zero exercise price provisions of the Series A Warrants
as described below (the “Series A Warrant Shares” and together with the Pre-Funded Warrant Shares, the “Warrant Shares”)
at an initial exercise price of $2.16 per share.

The Pre-Funded Warrants are exercisable (in cash
or by cashless exercise) for shares of common stock for a nominal exercise price of $0.0001 per Pre-Funded Warrant Share, were immediately
exercisable upon issuance and expire when exercised in full. We are not seeking approval of the exercise of the Pre-Funded Warrants.

The Series A Warrants are not currently exercisable,
will be exercisable following the Warrant Stockholder Approval (as described below) and will expire two and one-half (2.5) years thereafter.
If a registration statement registering the resale of the shares of common stock underlying the Series A Warrants is not effective or
available following the date of Warrant Stockholder Approval, the holder may, in its sole discretion, elect to exercise the Series A Warrants
through a cashless exercise. The Series A Warrants also include a zero exercise price provision (referred to in the text of the Series
A Warrants as an “alternative cashless exercise”) where, following the Warrant Stockholder Approval (even if a registration
statement registering the issuance or resale of shares of common stock underlying the Series A Warrant is effective), the holder of a
Series A Warrant has the right to receive, without paying any additional cash or consideration to the Company, an aggregate number of
shares of common stock equal to the product of (x) the aggregate number of shares of common stock that would be issuable upon a cash exercise
of the Series A Warrant multiplied (which is subject to adjustment, as described below, to a number of shares that is up to 10 times the
number of shares underlying the Series A Warrant at issuance) by (y) three (3.0). As a result of these zero exercise price provisions,
it is unlikely investors would choose to cash exercise the Series A Warrants, and